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X-fab grabs $50m cash for Lubbock SiC fab

X-fab grabs $50m cash for Lubbock SiC fab

Business news |
By Nick Flaherty

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The roll out of grants for semiconductor plants in the last stages of the US CHIPS Act continues with $50m for the silicon carbide (SiC) power device fab in Lubbock Texas run by X-fab of Belgium.

The latest agreements also include $33m for Coherent to upgrade its fab in Sherman, Texas, for indium phosphide (InP) photonic components on 150mm wafers and $16m for Skywater’s fab in Bloomington, Minnesota.

The Coherent funding has a certain irony as it has recently divested an InP fab in Durham in the UK. InP optoelectronic devices are widely used in applications such as datacom and telecom transceivers, including for AI infrastructure applications, advanced sensing for consumer electronics, and medical and automotive applications.

The increased production of Coherent’s InP devices, which are increasingly growing in demand, would allow the US to ‘advance supply chain resiliency’ says the department of commerce.

The X-fab deal at Lubbock is key as the plant is the only SiC foundry in the US, and the production of SiC power devices is key for electric vehicle powertrains and renewable energy power management.   

“The demand for silicon carbide technologies will be strong for the long term, and we are proud to provide solutions that support the transition to electric mobility and renewable energy sources,” said Rico Tillner, CEO of X-Fab Texas. “X-Fab Texas’ silicon carbide technologies are leading in quality and yield and provide a long-term perspective for the site. The proposed CHIPS funding will support the future success of X-Fab Texas and will contribute to the establishment of a domestic supply chain for silicon carbide.”

The Skywater funding would increase overall production capacity of 90nm and 130nm wafers by approximately 30% for customers in the aerospace and defense, automotive, biomedical and industrial markets to prototype and scale to volume production differentiated technology.

“We’ve been the beneficiary of many government program awards over the past several years, and we’re proud of our role in helping to expand the domestic microelectronics infrastructure and strengthen the U.S. supply chain,” said SkyWater CEO, Thomas Sonderman. “As America’s Trusted Foundry, through our business model and expanding capabilities, we are creating a national asset for technology development, which is in a critical state domestically. We have been working to meet the specific needs of the Defense Industrial Base and commercial companies developing the technologies of the future. The proposed investments today are another milestone along this path.”

“The bipartisan CHIPS and Science Act is making targeted investments to meet market demands for technology critical to our national and economic security,” said U.S. Secretary of Commerce Gina Raimondo. “Today’s proposed investments across Texas and Minnesota would help bolster domestic chip production and help secure our supply chain for decades to come.”

“Today’s three semiconductor announcements recognize that America’s innovative edge is rooted in communities like Sherman and Lubbock, Texas and Bloomington, Minnesota,” said National Economic Advisor Lael Brainard.

The proposed funding announced today would support the following projects:

$33 million would support the modernization and expansion of a state-of-the-art manufacturing cleanroom in Coherent’s existing 700,000 square-foot facility in Sherman, Texas to establish the world’s first 150mm indium phosphide (InP) manufacturing line by adding advanced wafer fabrication equipment to produce InP devices at scale.

Coherent, SkyWater and X-Fab have indicated they plan to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures. CHIPS Act funding is not expected to continue under the incoming Trump administration from January 20 2025.

www.commerce.gov

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