By Colin Kellaher

The U.S. government is awarding Analog Devices and Coherent up to $184 million to help the companies advance key semiconductor technologies.

The Commerce Department on Friday said it signed preliminary memoranda of terms to provide up to $105 million in direct funding to Analog Devices and up to $79 million to Coherent under the Chips Act, a nearly $53 billion government effort passed in 2022 to jump-start domestic semiconductor production.

The Commerce Department said the proposed Analog Devices funding would support the expansion and modernization of two research-and-development and RF microwave systems manufacturing plants in Chelmsford, Mass., and of semiconductor fabrication facilities in Beaverton, Ore., and Camas, Wash.

The Coherent investment would support the expansion of a manufacturing plant in Easton, Pa., to increase production capacity of silicon carbide substrates and expand the plant's epitaxial wafer manufacturing capacity, the Commerce Department said, adding that the project will create 320 manufacturing jobs.

Coherent previously inked a Chips Act deal for up to $33 million to help meet rising demand for indium-phosphide devices and $15 million to accelerate the commercialization of next-generation wide- and ultrawide-bandgap semiconductors.

The Semiconductor Industry Association, an industry trade group, said companies in the semiconductor ecosystem have announced 90 new projects across 28 U.S. states, totaling hundreds of billions of dollars in private investments, since the Chips Act was introduced.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

January 16, 2025 11:45 ET (16:45 GMT)

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