Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and Edwards Vacuum have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $18 million in proposed direct funding under the CHIPS and Science Act. President Biden signed the CHIPS and Science Act, a key component of his Investing in America agenda, to revitalize semiconductor manufacturing in America while strengthening our domestic supply chain, creating good-paying jobs, and supporting investments in the industries of the future. This proposed funding would support the construction of a greenfield state-of-the-art manufacturing facility in Genesee County, New York, which the company first announced in 2022. The facility will produce the dry vacuum pumps, which are needed for semiconductor production, and is estimated to create approximately 600 good-paying jobs.
“This strategic and targeted proposed investment in domestically manufactured dry vacuum pumps, which all semiconductor manufacturers need to operate fabs, is another example of how we are working to ensure every part of the semiconductor supply chain is being built right here in the United States,” said U.S. Secretary of Commerce Gina Raimondo. “With President Biden and Vice President Harris’s CHIPS and Science Act and this proposed investment in New York, semiconductor manufacturers would have a domestic supply of this important equipment.”
This proposed investment in Edwards Vacuum, will help ensure a reliable domestic supply of important equipment needed for semiconductor manufacturing. This would be a meaningful step towards strengthening U.S. economic and national security, as currently, there is no domestic production of semiconductor-grade dry vacuum pumps. These pumps are essential for both advanced and legacy semiconductor fabrication: Installed beneath the fab, they maintain the chamber environment where wafers are processed by evacuating toxic fumes and chemicals.
“As a result of the Biden -Harris Administration’s proposed investment in Edwards Vacuum – made possible by the historical CHIPS and Science Act – the U.S. is expected to play a significant role in producing these important pieces of equipment for U.S. based fabs and will create hundreds of jobs in the process,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio.
Edwards Vacuum’s local workforce development efforts include a partnership with Genesee Community College (GCC). Edwards Vacuum’s commitment to GCC is centered around ensuring their workforce remains equipped with the latest skills and knowledge to thrive in the semiconductor industry. Additionally, Edwards Vacuum is a member of the NY SMART I -Corridor Consortium Tech Hub which is bringing together local actors to enhance semiconductor manufacturing capabilities while ensuring economic opportunity reaches underserved communities in upstate New York. The Biden-Harris Administration, through the Department of Commerce, has also provided a Build Back Better Regional Challenge award to the area in 2022. The multiple layers of federal resources are driving local revitalization through advanced manufacturing. 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.
The company has indicated that it plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
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 the PMT being announced today.
