Infinera receives $93 million funding from the US Chip Act to expand production and packaging of photonic chips
The US Department of Commerce has partnered with Infinera through the Chip Act and signed a non binding memorandum, providing up to $93 million in funding. This investment aims to promote Infinera's semiconductor manufacturing and advanced packaging businesses in California and Pennsylvania. This initiative focuses on national security and strengthening communication infrastructure, aiming to create new job opportunities while strengthening the US supply chain to support long-term economic recovery and growth.
The funding from the US Chip Act will enable Infinera to significantly expand its semiconductor manufacturing capabilities. Infinera will build a new wafer manufacturing plant in San Jose, California and establish a testing and advanced packaging center in Bethlehem, Pennsylvania. These projects are expected to create approximately 1700 job positions, including 1200 construction positions and 500 manufacturing positions. This expansion not only strengthens the manufacturing capabilities of the United States, but also enhances national security by reducing dependence on foreign suppliers.
Infinera is a vertically integrated American manufacturer specializing in optical network solutions and semiconductors. The company has over 20 years of experience and specializes in producing photonic chips (PICs) using indium phosphide (InP) technology.
Infinera's advanced photonic chips support efficient data transmission for broadband networks, data centers, and artificial intelligence (AI) driven applications. By integrating multiple optical functions onto a single chip, these circuits reduce energy consumption and operating costs while optimizing network performance.
Infinera has its own semiconductor manufacturing and packaging facilities, which enable it to fully control production and accelerate innovation. Photon chips are a component of high-speed communication networks, including long-distance and underwater systems, and support secure data transmission that is crucial to national security.