Business
MACOM Announces Strategic Capital Investment Plan
Plan Supports MACOM’s Strategy to Advance United States Semiconductor Manufacturing and Technology Leadership CHIPS and Science Act Proposed Direct Funding,
About this update from Macom Technology Solutions Holdings, Inc.
[{"type":"text","content":"\n\nPlan Supports MACOM’s Strategy to Advance United States Semiconductor Manufacturing and Technology Leadership\n\n\n\nCHIPS and Science Act Proposed Direct Funding, Federal Investment Tax Credits and Direct State Funding Would Offset up to 50% of Costs\n\n\n\n LOWELL, Mass.--(BUSINESS WIRE)--\nMACOM Technology Solutions Holdings, Inc. (“MACOM”) (Nasdaq: MTSI), is pleased to announce its long-term investment plan to modernize its Massachusetts and North Carolina semiconductor wafer fabrication facilities. MACOM’s five-year strategic investment plan of up to $345 million is supported by a recently executed preliminary, non-binding agreement with the CHIPS Program Office, which would provide for proposed direct funding from the U.S. Department of Commerce under the CHIPS and Science Act of up to $70 million. The preliminary terms propose up to $180 million to be supported by the CHIPS and Science Act through a combination of direct Federal funding, Federal Investment Tax Credits and State funding, including direct funding from the Massachusetts Technology Collaborative of up to $15.7 million as well as other incentives from the State of Massachusetts. It is expected that the balance of approximately $165 million would be self-funded by MACOM’s operating cash flow over the next five years.\n\n\nThis wafer fab capital investment plan supports MACOM’s growth and market positioning strategy to be an industry leading supplier of advanced RF, microwave and millimeter wave semiconductor technologies. MACOM’s innovative technology and product portfolio supports existing and emerging Defense, Telecommunications and Datacenter applications.\n\n\nMassachusetts Wafer Fabrication Facility Investment Highlights\n\n\n\nExpansion of clean rooms within existing building footprint\n\n\n\nModernization of current 100mm production lines, including GaAs, GaN, Silicon and other III-V materials\n\n\n\nInstallation of 150mm GaN-on-SiC manufacturing capability for advanced node applications\n\n\n\nInfrastructure upgrades (HVAC, water, solar and power systems)\n\n\n\nNorth Carolina Wafer Fabrication Facility Investment Highlights\n\n\n\nExpansion of clean rooms within existing building footprint\n\n\n\nInstallation of 150mm wafer size production capabilities to support RF GaN-on-SiC processes\n\n\n\nInstallation of advanced MOCVD epitaxial growth capabil...