Recently, the Biden administration announced that the United States Department of Commerce signed a memorandum with Infinera to provide up to $93 million in direct funding under the CHIPS and Science Act. The bipartisan legislation aims to revitalize United States' semiconductor manufacturing, strengthen domestic supply chains, create good-paying jobs, and solidify United States' leadership in global technology. The funding will support the construction of a new fab in San Jose, California, and a state-of-the-art test and packaging facility in Bethlehem, Pennsylvania, which is expected to increase Infinera's domestic manufacturing capacity by 10x and create approximately 500 manufacturing and 1,200 construction jobs.
United States Secretary of Commerce Gina · Raimondo said: "From artificial intelligence to electric vehicles, 21st century technologies rely on optical semiconductors produced by Infinera. The Biden-Harris administration is achieving the economic and national security goals of the CHIPS and Science Act through such investment programs, creating high-tech jobs across the country.”
Infinera is a vertically integrated semiconductor and telecommunications equipment manufacturer that has operated advanced test and packaging facilities in the United States for more than 20 years. As the United States becomes more reliant on large amounts of data, Infinera's indium phosphide photonic integrated circuit (InP PIC), a technology that transmits information through light and is more energy efficient, has become a key component of optical network communications.
White House Deputy Chief of Staff Natalie Quillian said, "Thanks to the CHIPS and Science Act, we are bringing state-of-the-art semiconductor manufacturing technology back to United States and investing in job creation. Today's announcement shows how chips can directly support key industries such as artificial intelligence and telecommunications, and create economic opportunities in Pennsylvania and California.”
Laurie · Locasio, Deputy Secretary of Standards and Technology of the United States Department of Commerce, emphasized: "The Biden administration will continue to drive investment plans in the semiconductor supply chain. The investment will strengthen United States' supply capacity for advanced secure communications technologies and create approximately 1,700 new jobs.”
Pictured: Infinera receives support from the CHIPS Act
Infinera plans to use this proposed funding to expand capacity at the following two locations:
1. San Jose, CA: Building a modern fab and foundry with more than 40,000 square feet of cleanroom space to increase InP PIC's manufacturing capabilities. The project is expected to increase production capacity by a factor of 10.
2. Bethlehem, PA: Establish a state-of-the-art test and packaging facility focused on meeting the growing demand for InP PICs. The facility will be the only advanced facility in the United States dedicated to InP PIC packaging, helping to strengthen domestic and global packaging supply chains and preserve domestic packaging sites for defense and intelligence customers.
To attract, train, and develop employees, Infinera has partnered with the SEMI Foundation to build a diverse and skilled workforce. As a founding member of the Semiconductor Careers and Apprenticeship Network (SCAN) program, Infinera also participates in California's Semiconductor and Nanotechnology Apprenticeship Pioneers (SNAP) program to promote employment opportunities in the semiconductor industry for economically disadvantaged populations.
In addition, Infinera offers the Dependent Care Flexible Spending Account (DCFSA), which allows employees to set aside up to $5,000 per year in pre-tax funds for eligible dependent care expenses. The company has also partnered with Care.com to offer a company-paid subscription service to United States employees and implemented parental leave benefits in California.
Infinera is committed to using 100% renewable energy at all of its sites by 2030 and prioritizing sustainable water stewardship. Through advanced water treatment systems and water-saving technologies, the company has achieved a 15% reduction in water consumption and has achieved 95% carbon neutrality across its San Jose operations.
