The U.S. Department of Commerce awarded Infinera up to $93 million in direct funding to support the construction of a new fab in San Jose, California, and a new advanced test and packaging facility in Bethlehem, Pennsylvania.
Infinera is a vertically integrated photonic semiconductor and telecommunications equipment manufacturer and the indium phosphide-based photonic circuits (InP PICs) that they manufacture are increasingly important, using light to transfer information with greater energy efficiency. The PICs and optical modules are key components in optical network communications and enable the fast and reliable transfer of large amounts of data in communications, spanning short- to long-distance broadband networks connecting cities, countries, and continents; between data centers; and between artificial intelligence (AI) and machine-learning (ML) clusters inside data centers.
As a leading U.S.-based manufacturer of these chips, Infinera’s capabilities are important for America’s economic and national security and the CHIPS investment will allow Infinera to increase the domestic fabrication and advanced test and packaging of InP PICs for the Department of Defense, Intelligence community, law enforcement, and national security agencies for secure communications in emerging technologies such as quantum technology, sensing, and LiDAR.
Infinera’s projects are expected to create approximately 500 manufacturing jobs and 1,200 construction jobs.
To recruit, train, and retain the workforce needed for these projects, Infinera will implement a robust workforce strategy informed by the Department of Labor’s Good Jobs Principles, and has partnered with the SEMI Foundation on its efforts to build a diverse and skilled community of workers. Additionally, at the California facility, Infinera will establish a registered apprenticeship program for the project facility to cater to young workers (ages 18 to 24) to prepare them for senior positions as part of succession planning for existing employees’ career development.
Regarding the construction workforce, in California, Infinera has signed a Project Labor Agreement (PLA) with Nor Cal Carpenters Union (NCCU). Additionally, for trades not covered by NCCU, Infinera’s general contractor, Vulcan Construction, has agreed to hire from a contractor base consisting of 100% labor union-signatory contractors affiliated with the building trades. In Pennsylvania, Infinera plans to utilize a PLA and partner with the Lehigh Valley Building Trades for the construction of its new advanced test and packaging facility.
In connection with the CHIPS award, Infinera is committing to the following environmental responsibility and worker safety measures in its operations. As is required for all CHIPS projects, the Infinera projects will comply with all applicable environmental laws, including the Clean Water Act, Clean Air Act, Endangered Species Protection Act, and the Resource Conservation and Recovery Act.
Infinera is making the following environmental commitments:
Infinera has also committed to the following worker safety measures:
As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will disburse direct funding to the company for capital expenditures spent on the projects based on the completion of construction, technology, production, and commercial milestones. The CHIPS Program Office will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.
All CHIPS funding recipients are required to adhere to restrictions pursuant to the CHIPS Act and NOFO regarding stock buybacks and national security guardrails, which limit the sharing of intellectual property. Infinera has agreed to not engage in any stock buybacks for a period of five years.
Infinera Project Overview | ||
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Project Summary | Recipient | Infinera |
Location(s) | San Jose, California Bethlehem, Pennsylvania | |
Financial Summary | Program | CHIPS Program Office |
Direct Funding Amount | Up to $93 million | |
Expected Capital Expenditure | $456 billion | |
Workforce Summary | Estimated Job Creation | Over 500 manufacturing jobs 1,200 construction jobs
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Project Statistics: Bethlehem, Pennsylvania | ||
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Facility Summary | Project Type | Construction of a new, state-of-the-art advanced test and packaging facility |
Technology | Advanced test and packaging | |
Estimated Job Creation | 291 manufacturing jobs; 500 construction jobs. | |
Project Timeline | Production expected summer of 2026 |