Semiconductor Company in Line for $93 Million in Federal Funding
Infinera, a leading California-based semiconductor company, is in discussions to receive $93 million in federal funding to expand its manufacturing capabilities in Bethlehem, Pennsylvania, and San Jose, California. This funding, part of the CHIPS Act, is aimed at boosting the U.S. semiconductor supply chain.
According to the U.S. Department of Commerce, the funds will support the construction of an advanced packaging and testing facility in Bethlehem and a semiconductor fabrication plant in San Jose. Together, these projects are expected to significantly increase Infinera’s production capacity.
Job Creation and Regional Impact
The Bethlehem facility is projected to generate up to 291 manufacturing jobs and 500 construction jobs, bringing substantial economic benefits to the Lehigh Valley area. Meanwhile, the new California plant will strengthen Infinera’s overall production, potentially increasing its capacity tenfold. Though the exact timeline is yet to be confirmed, these projects mark a significant step forward for U.S. semiconductor manufacturing.
Infinera’s CEO, David Heard, expressed appreciation for the CHIPS Act and its role in securing the U.S. supply chain. “This funding will help us compete more effectively on a global scale and secure our supply chain against foreign adversaries,” Heard said.
Boosting U.S. Semiconductor Production
The CHIPS Act, signed into law in 2022, allocates $50 billion to enhance domestic semiconductor production. The initiative arose from a semiconductor shortage that hit the U.S. from 2020 to 2023, driven by global supply chain disruptions.
“Semiconductors are the backbone of modern technologies, from AI to electric vehicles,” U.S. Secretary of Commerce Gina Raimondo said. Infinera specializes in indium phosphide-based photonic integrated circuits, which play a crucial role in high-speed data transmission.
Pennsylvania Senator Bob Casey and U.S. Representative Susan Wild have voiced strong support for the project, highlighting its potential to boost local economies and strengthen national security.
