Outgoing Biden administration proposes $3M to expand, modernize Hempfield semiconductor business
The Biden administration is proposing to provide $3 million to a Westmoreland County semiconductor manufacturer through the federal CHIPS and Science Act.
The money would be part of a $15 million expansion and modernization at Powerex , in Hempfield near the Westmoreland County Community College campus. The company manufactures discrete devices, modules and integrated high power semiconductors.
Discrete devices are single semiconductors such as diodes or transistors.
Powerex's semiconductor power modules have been used in F-35 fighter jets, and the proposed funding would nearly double the company's capacity and allow it to update key equipment, in addition to creating more than 55 manufacturing jobs and 20 construction jobs.
"With this proposed funding, we'll enhance our production capabilities and create new jobs, providing growth and advancement opportunities for our employees," Powerex CEO Joseph Wolf said in a U.S. Commerce Department news release."This proposed investment allows us to meet rising demand with U.S.-made products while building a stronger future for our team and community.
The announcement also proposes $32 million in funding for New York-based Corning, to increase production of its high-purity fused silica and ultra-low-expansion glass, which are both critical in the manufacturing of semiconductors.
The Biden administration has placed emphasis on reducing the country's reliance on semiconductor technology from abroad.
In addition, Powerex has recently initiated a local workforce development strategy with regional universities, colleges, high schools and veterans' programs to create a pipeline of potential new employees.
"Powerex plays an important role in supporting U.S. Department of Defense programs, with over half of our power module production dedicated to military applications," Wolf said. "This proposed funding would help Powerex mitigate supply chain risks and address the constraints brought on by the rising demand for our power modules."
Last year, Sen. Bob Casey Jr., who appears to have lost his Senate seat to challenger Dave McCormick , visited Powerex to lobby for the company to receive the CHIPS funding.
An assessment will be done by the U.S. Department of Commerce, before final amounts are announced and awarded.
Both Powerex and Corning also indicated that they plan to claim the U.S. Treasury Department's Advanced Manufacturing Investment Credit, which is 25% of capital expenditures.
President-Elect Donald Trump's return to the White House, however, casts some doubt over the future of the CHIPS Act.
The 2024 Republican National Congress manifesto pledged to "bring our critical supply chains back home" to "become the manufacturing superpower by protecting American workers from unfair foreign competition."
However in his pre-election interview with podcaster and comedian Joe Rogan, Trump referred to the CHIPS Act as "so bad" because it subsidizes "rich companies." Samsung, for example, which is based in South Korea, has a market cap of $211.8 billion, making it the 35th most valuable company in the world.
