SIA Applauds CHIPS Incentives for Infinera Expansion in Pennsylvania and California

by Semiconductor Industry Association

WASHINGTON—Oct. 18, 2024—The Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer applauding semiconductor manufacturing incentives announced by the U.S. Department of Commerce and Infinera.

The incentives, which are part of the CHIPS and Science Act, will support the development of an advanced test and packaging facility in Pennsylvania and the construction of a new fab in California. Infinera produces indium phosphide-based photonic integrated circuits, which use light to transfer information with high levels of energy efficiency.

“These announced incentives will help Infinera expand its production capacity by roughly ten-fold, bringing more jobs, manufacturing, and innovation to U.S. shores. Infinera’s new facilities will strengthen America’s supply chain resilience and advanced packaging capabilities, especially in the defense and AI sectors, helping to meet key goals of the CHIPS Act. We congratulate Infinera for their ambitious investments in Pennsylvania and California and commend the U.S. Department of Commerce for working to reinforce domestic semiconductor production and supply chain resilience.”

The U.S. Department of Commerce previously announced incentives for a range of companies and projects that will help strengthen the U.S. semiconductor supply chain.

The CHIPS Act’s manufacturing incentives have sparked substantial announced investments in the U.S. In fact, companies in the semiconductor ecosystem have announced 90 new projects across 28 U.S. states—totaling hundreds of billions of dollars in private investments—since the CHIPS Act was introduced. These announced projects will create more than 58,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional U.S. jobs throughout the U.S. economy.

An SIA-Boston Consulting Group report released in May projected the United States will triple its domestic semiconductor manufacturing capacity from 2022—when CHIPS was enacted—to 2032. The projected 203% growth is the largest projected percent increase in the world over that time. The report also projected America will capture over one-quarter (28%) of total global capital expenditures (capex) from 2024-2032.

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About SIA
The Semiconductor Industry Association (SIA) is the voice of the semiconductor industry, one of America’s top export industries and a key driver of America’s economic strength, national security, and global competitiveness. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms. Through this coalition, SIA seeks to strengthen leadership of semiconductor manufacturing, design, and research by working with Congress, the Administration, and key industry stakeholders around the world to encourage policies that fuel innovation, propel business, and drive international competition. Learn more at www.semiconductors.org.