The CHIPS and Science Act represents a landmark effort to revitalize the American semiconductor industry.
Enacted to address global chip shortages and bolster national security, this legislation provides substantial funding for the development and manufacturing of semiconductors within the United States.
The Act underscores the strategic importance of having a robust domestic semiconductor supply chain, particularly as demand for these components continues to soar globally.
Details of the Agreement
The U.S. Department of Commerce and Rogue Valley Microdevices have signed a preliminary memorandum of terms (PMT). This non-binding agreement outlines the proposed $6.7 million investment aimed at enhancing RVM’s capabilities.
The funding will support the construction of a new microelectromechanical systems (MEMS) foundry facility in Palm Bay, Florida, which is set to significantly boost production capacity.
- Investment Amount: $6.7 million
- Location: Palm Bay, Florida
U.S. Secretary of Commerce Gina Raimondo emphasized,
“The proposed investment in RVM is another example of how the Biden-Harris Administration is making targeted investments across the semiconductor supply chain to reignite U.S. leadership in semiconductor manufacturing.”
National Economic Advisor Lael Brainard echoed these sentiments, highlighting the commitment to America’s semiconductor resurgence and the benefits for businesses of all sizes, including women and minority-owned enterprises.
Impact on Rogue Valley Microdevices
The investment in RVM is poised to support the construction of a state-of-the-art MEMS foundry in Palm Bay, Florida. This facility will not only triple RVM’s production capacity but also create over 75 jobs, bolstering the local economy.
The foundry will produce MEMS devices on 300mm wafers, crucial for various industries, including defense and biomedical sectors.
The anticipated timeline for the facility’s construction includes:
- Initial wafer production: Early 2025
- Facility completion: Mid 2025
RVM’s Founder and CEO Jessica Gomez stated,
“We plan to use this capital infusion to increase production of the miniature, intelligent sensors critical to markets where a robust supply chain is essential.”
Strategic Importance of MEMS Technology
MEMS technology, which integrates electrical and mechanical components at the microscale, is vital for numerous applications.
These include automotive, biomedical, and industrial sectors, where advanced sensors and systems are necessary for innovation and performance.
As one of the few U.S.-based pure play MEMS foundries, RVM plays a critical role in supporting the domestic semiconductor ecosystem.
The main industry sectors benefiting from MEMS technology:
Sector |
Applications |
|---|---|
| Automotive | Advanced driver-assistance systems (ADAS) |
| Biomedical | Medical devices and diagnostics |
| Industrial | Automation and control systems |
Future Prospects
Looking ahead, the construction of RVM’s new foundry is expected to significantly enhance the U.S. semiconductor supply chain.
The proposed CHIPS investment will ensure a stable supply of MEMS devices, reducing reliance on foreign manufacturers and mitigating potential supply chain disruptions.
This move aligns with the broader goals of the CHIPS and Science Act, which aims to foster innovation and maintain U.S. leadership in semiconductor technology.
The Department of Commerce has received an overwhelming response to the CHIPS for America initiative, with over 670 statements of interest and numerous applications.
The agreement with RVM marks the twelfth PMT announcement under this Act, with more to follow throughout 2024.
Closing the Loop
The $6.7 million CHIPS Act investment in Rogue Valley Microdevices underscores the Biden-Harris Administration’s commitment to strengthening the U.S. semiconductor industry.
By supporting the construction of a new MEMS foundry in Florida, this initiative not only boosts production capacity but also enhances national security and economic resilience.
As the first MEMS foundry to secure CHIPS funding, RVM is set to play a pivotal role in the future of American semiconductor manufacturing.
Sources: THX News & US Department of Homeland Security.
