Semiconductor company in talks to receive $93 million in federal funds for new Bethlehem facility
Infinera, a San Jose-based semiconductor company with an Allentown location, is in talks to receive $93 million from the federal government to build new facilities in Bethlehem and California.
According to the U.S. Department of Commerce, the CHIPS Act funding would go toward a new Infinera “advanced packaging and test” semiconductor facility in Bethlehem and a separate semiconductor fabrication plant in San Jose, California.
The new Bethlehem plant is expected to bring up to 291 new manufacturing jobs and 500 construction jobs to the region. The exact timing of the project was not immediately made public, and the award was announced via a “non-binding preliminary memorandum of terms,” so the exact size and terms of the award are not yet finalized.
The 2022 CHIPS Act earmarked $50 billion to strengthen U.S.-based semiconductor chip manufacturing. President Joe Biden proposed the law in the face of a national shortage of semiconductor chips which lasted from 2020 to 2023. The United States has largely been reliant on semiconductors manufactured in China, and interruptions to their supply chain caused the shortage.
Semiconductors are a material used in electrical circuits that conduct electricity, and are critical to most modern technology products from medical devices to smartphones to cars.
Pennsylvania Sen. Bob Casey said investing in U.S. semiconductor manufacturing is important for both national security and local economies.
“The fact that you have a preliminary agreement is a really positive development for the opportunity both to create jobs and to invest in manufacturing in the Lehigh Valley,” Casey said in an interview with The Morning Call.
In a statement, Congresswoman Susan Wild, D-7, also lauded the investment. Both Casey and Wild wrote letters to Commerce Secretary Gina Raimondo calling for Infinera to receive the award.
“I was proud to help secure this funding for Infinera, to support our national security and intelligence communities and bolster our local economy and manufacturing ecosystem,” Wild said.
This is a developing story. Check back for updates.