Infinera, a vertically integrated manufacturer of open optical networking systems and optical semiconductors,?has been allocated up to $93 million in federal funding under the CHIPS and Science Act. This funding, combined with tax credits, could total over $200 million in incentives.
- Infinera plans to construct new facilities in California and Pennsylvania to significantly expand its indium phosphide (InP) photonic integrated circuits (PICs) manufacturing capacity.
- The California facility will increase InP PIC manufacturing capacity tenfold. The Pennsylvania facility will focus on advanced testing and packaging.
- Infinera's investment aligns with the increasing demand for high-bandwidth solutions driven by AI workloads and data center growth. The company's unique photonic semiconductors address these needs and offer competitive advantages.
- The combined projects are expected to create up to 1,700 jobs, including manufacturing and construction positions.
- This investment will strengthen the U.S. supply chain and contribute to economic and national security.
- This news highlights the positive impact of the CHIPS and Science Act on the U.S. semiconductor industry.
- While the direct impact of Infinera's CHIPS Act funding on employment in the Asia Pacific region may be limited, the expansion of U.S. semiconductor manufacturing capacity could increase competition for talent and resources in the Asia Pacific region. Skilled workers and professionals could be drawn to the U.S. for higher-paying jobs or better opportunities.
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