Recent government agreements promise a significant boost to the U.S. semiconductor supply chain. The Biden-Harris Administration has announced preliminary deals with industry leaders Corning and Powerex under the CHIPS Act, targeting increased domestic production and supply chain resilience.
With new facilities planned in New York and Pennsylvania, these investments are expected to advance semiconductor manufacturing in the U.S., reinforcing national technology leadership and creating hundreds of jobs.
The CHIPS Act: An Investment in U.S. Innovation
The CHIPS and Science Act, signed into law in 2022, is a cornerstone of the U.S. government’s push to restore domestic semiconductor manufacturing.
Encompassing nearly $53 billion dedicated to semiconductor-related development, the act provides incentives for research, production, and workforce training across the semiconductor supply chain.
With this act, the government aims to reduce reliance on foreign semiconductor imports and support domestic industries vital for technological progress.
Corning’s Facility Expansion in New York
One of the most prominent investments within this initiative is directed toward Corning Incorporated. Known for its specialty glass and optical lenses, Corning’s products are foundational in semiconductor lithography—a highly precise process essential for producing today’s microchips.
- Investment Scope: Corning will receive up to $32 million to expand its existing facility in Canton, New York.
- Job Creation: The project expects to create approximately 130 manufacturing jobs and 175 construction jobs.
- Community Benefits: Corning will invest in local workforce development, training initiatives, and support for childcare programs.
In addition to increasing its High Purity Fused Silica (HPFS) and Ultra Low Expansion (ULE) glass production, Corning will introduce environmentally friendly manufacturing methods to minimize the carbon footprint of its semiconductor materials.
HFPS and ULE materials are key components in lithography machines, necessary for fabricating cutting-edge microchips.
“This investment allows us to establish next-generation manufacturing capabilities to support semiconductor innovation in the U.S.,” said Wendell Weeks, Corning’s CEO.
Corning’s partnership with local unions and educational institutions in New York demonstrates its commitment to supporting the regional economy, training workers, and creating sustainable jobs.
The initiative also bolsters workforce readiness through the newly established Upstate New York Investing in America Workforce Hub, which will help fill skilled roles in the semiconductor supply chain.
Powerex: Expanding Pennsylvania’s Semiconductor Capacity
In a separate agreement, Powerex will receive up to $3 million under the CHIPS Act to enhance production at its Youngwood, Pennsylvania facility.
Known for its production of semiconductor power modules, Powerex supplies components critical for defense applications, including the F-35 fighter jet, as well as for commercial and industrial uses.
- Capacity Expansion: The funding will nearly double Powerex’s production capacity.
- Technology Upgrades: Planned modernization of equipment will ensure continued reliability and adaptability to industry needs.
This strategic expansion will bolster the local job market and address the rising demand for power modules in both defense and commercial sectors.
“The proposed investment enhances our production capacity and strengthens our workforce, helping us meet rising demand with U.S.-made products,” said Powerex CEO Joseph Wolf.
Why Strengthening the Semiconductor Supply Chain Matters
Investment Targets by CHIPS Act |
Funding |
|---|---|
| Total semiconductor funding | $52.7 billion |
| R&D and workforce development | $13.2 billion |
| Manufacturing incentives | $39 billion |
| Technology hubs | $10 billion |
This funding table highlights the CHIPS Act’s multifaceted approach, including not only manufacturing incentives but also investment in research, technology hubs, and workforce training.
Workforce Development Initiatives
Both Corning and Powerex have committed to regional partnerships to support job training and education for local communities. Corning, for example, collaborates with several local schools and programs, including SUNY Potsdam, to develop skilled talent for its facility.
Similarly, Powerex engages with veterans’ programs like DOD SkillBridge and Pittsburgh Hires Veterans, providing specialized training and career advancement opportunities.
These initiatives reflect a nationwide effort to equip the next generation of American workers with the skills needed for high-demand, high-paying semiconductor industry jobs.
Building America’s Future in Semiconductors
As these investments unfold, the U.S. semiconductor industry will establish stronger foundations. Consequently, it will benefit from modern facilities, enhanced supply chain resilience and expanded production capacity.
Simultaneously, CHIPS Act-supported projects, involving companies like Corning and Powerex, propel the U.S. toward global semiconductor leadership.
These advancements promise not only a revitalized economy but also a strengthened capacity for innovation, from defense technology to consumer electronics.
Sources: THX News, White House, Wikipedia, McKinsey and Co., & US Department of Commerce.
