Macom unveils $345M plan to modernize Massachusetts, North Carolina facilities

Macom (MTSI) announced its long-term investment plan to modernize its Massachusetts and North Carolina semiconductor wafer fabrication facilities. Macom’s five-year strategic investment plan of up to $345M is supported by a recently executed preliminary, non-binding agreement with the CHIPS Program Office, which would provide for proposed direct funding from the U.S. Department of Commerce under the CHIPS and Science Act of up to $70M. The preliminary terms propose up to $180M to be supported by the CHIPS and Science Act through a combination of direct Federal funding, Federal Investment Tax Credits and State funding, including direct funding from the Massachusetts Technology Collaborative of up to $15.7M as well as other incentives from the State of Massachusetts. It is expected that the balance of approximately $165M would be self-funded by Macom’s operating cash flow over the next five years. Macom expects to work with the CHIPS Program Office to finalize the details and terms of a definitive agreement.