Proposed CHIPS Investments in New York and Pennsylvania Would Help Enhance Domestic Production Capacity of Key Components for U.S. Semiconductor Manufacturing

Today, the Biden-Harris Administration announced that the U.S. Department of Commerce signed two separate preliminary memoranda of terms (PMT) under the CHIPS and Science Act to provide Corning up to $32 million in proposed direct funding and Powerex up to $3 million in proposed direct funding. President Biden and Vice President Harris signed the bipartisan CHIPS and Science Act to usher in a new era of semiconductor manufacturing in the United States, bringing with it a revitalized domestic supply chain, good-paying jobs, and investments in the industries of the future. The proposed investment in Corning would support the company’s expansion of its existing manufacturing facility in Canton, New York, and is expected to create 130 manufacturing jobs and over 175 construction jobs. The proposed investment in Powerex would support the modernization and expansion of the company’s back-end production facility in Youngwood, Pennsylvania, and is expected to create over 55 manufacturing jobs and up to 20 construction jobs.

“Because of the Biden-Harris Administration’s bipartisan CHIPS and Science Act, we are making targeted proposed investments across the semiconductor supply chain that are driving the revitalization of this industry in America,” said U.S. Secretary of Commerce Gina Raimondo. “These proposed actions are creating quality jobs across the country while advancing U.S. technological leadership.”

The proposed funding announced today would support the following projects:

  • Corning (Canton, New York): The Biden-Harris Administration’s proposed funding of up to $32 million would enable Corning, one of the largest industrial employers in New York’s North Country region, to increase production of Corning HPFS Fused Silica (High Purity Fused Silica) (HPFS) and EXTREME ULE Glass (Ultra Low Expansion Glass) and scale a novel technology manufacturing process in Canton. HFPS and ULE materials are key components of deep ultraviolet (DUV) and extreme ultraviolet (EUV) lithography machines and photomasks, which are important for the manufacturing of leading-edge semiconductors, and this new technology would improve EUV performance with a lower carbon footprint. This proposed investment in Corning would help enable a reliable domestic supply of these important components in the United States and help advance U.S. technology leadership in the lithography supply chain. The project is expected to create 130 manufacturing jobs and over 175 construction jobs. Corning partners with the United Steelworkers Local 1026, who represent Corning’s glass-making workforce at the Canton facility and will represent applicable new workers, and the Bricklayers and Allied Craftworkers to recruit and retain workers, including by recently jointly establishing an apprenticeship program. Corning also invests in local workforce development efforts through partnerships with the St. Lawrence Industrial Development Agency, the St. Lawrence Workforce Development Board, Canton Central School District, and SUNY Potsdam. To support both the company’s workforce and the broader community’s childcare infrastructure, Corning plans to invest $300,000 per year for the duration of the proposed project to support the St. Lawrence County Childcare Training Program, which would help build and stabilize the child care workforce and increase child care supply for the community, making it easier for employees to find and obtain care. This proposed investment will also support and benefit the work of the Upstate New York Investing in America Workforce Hub, which will train New Yorkers for good-paying jobs up and down the semiconductor supply chain.
  • Powerex (Youngwood, Pennsylvania): The Biden-Harris Administration’s proposed funding of up to $3 million would support Powerex’s total investment of $15 million to modernize and expand its production facility in Youngwood. This facility packages semiconductor power modules for important defense applications including the F-35, as well as commercial and industrial applications. The proposed funding would be expected to nearly double capacity and modernize key equipment. The project is estimated to create over 55 manufacturing jobs and up to 20 construction jobs. To support the company and local workforce, Powerex has initiated a local workforce development strategy with regional schools including universities, colleges, high schools, and veterans programs. Powerex also participates in military workforce programs, including DOD SkillBridge, Pittsburgh Hires Veterans, the Pennsylvania Talent Pipeline Project, and state workforce programs such as PA Career Link and the Workforce Investment Board.

“Corning is proud to be an industry leader of specialty glass and precision optical lenses for the semiconductor industry, and our Canton facility plays a vital role in the nation’s mission to strengthen the domestic semiconductor supply chain,” said Corning Incorporated Chairman and CEO Wendell Weeks. “This proposed investment and the continued commitment in Canton will enable us to establish the next-generation manufacturing capabilities needed to produce vital materials for lithography tools that will develop the world’s most complex microchips, strengthening our commitment to advancing semiconductor technology and job creation in the United States.”

“We’re grateful for the Department of Commerce’s proposed support through the CHIPS and Science Act, which would enable small companies like ours to invest in modern equipment and expand production. With this proposed funding, we’ll enhance our production capabilities and create new jobs, providing growth and advancement opportunities for our employees,” said Powerex CEO Joseph Wolf. “This proposed investment allows us to meet rising demand with U.S.-made products while building a stronger future for our team and community. Powerex plays an important role in supporting U.S. Department of Defense programs, with over half of our power module production dedicated to military applications. This proposed funding would help Powerex mitigate supply chain risks and address the constraints brought on by the rising demand for our power modules.”

Corning and Powerex have both indicated they plan to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures. Click here to learn more about the tax credit.

As explained in its first Notice of Funding Opportunity, the Department of Commerce may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a potential CHIPS incentives award, including the amount and form of the award. The award amounts are subject to due diligence and negotiation of award documents and are conditional on the achievement of certain milestones. After a PMT is signed, the Department of Commerce begins a comprehensive due diligence process on the proposed projects and continues negotiating or refining certain terms with the applicant. The terms contained in any final award documents may differ from the terms of Corning and Powerex’s PMT’s being announced today.