Entegris and U.S. Department of Commerce Announce Entry Into Award Agreement Under CHIPS Act

Rhea-AI Summary

Entegris (NASDAQ: ENTG) has secured up to $77 million in funding under the CHIPS and Science Act from the U.S. Department of Commerce, becoming the first semiconductor supplier to finalize such an award agreement. The funding will support the development of a state-of-the-art manufacturing center in Colorado Springs, scheduled to begin operations in 2025.

The facility will produce liquid filtration products and Front-Opening-Unified Pods (FOUPs), currently manufactured exclusively in Asia. The center is expected to create approximately 600 new jobs over the next several years, with 300 jobs already created during construction. The site will serve as a Military Center of Excellence, aiming to recruit 50% of its workforce from veterans and military families through various partnerships.

Positive

• Secured $77 million in CHIPS Act funding
• First semiconductor supplier to finalize CHIPS Act award agreement
• New manufacturing facility reducing dependence on Asian production
• Creation of 600 new jobs, with 300 already established
• Strategic expansion of U.S. manufacturing capabilities

Negative

• None.

Insights

Financial Analyst

The $77 million CHIPS Act funding represents a significant milestone for Entegris, marking them as the first semiconductor supplier to secure such support. This federal backing substantially reduces the capital burden for their Colorado Springs facility expansion. The investment will enable domestic production of critical components like FOUPs, currently manufactured exclusively in Asia, supporting supply chain resilience. The creation of 600 new jobs and the facility's expected operational start in 2025 signals strong growth potential. The strategic focus on military veteran recruitment could provide access to skilled workforce while potentially qualifying for additional tax benefits. This development strengthens Entegris' competitive position in the U.S. semiconductor supply chain and could positively impact long-term revenue streams through increased domestic market share.

Manufacturing Expert

The establishment of domestic FOUP production capabilities represents a important step in strengthening the U.S. semiconductor supply chain. The new Colorado Springs facility's focus on liquid filtration products and FOUPs addresses critical components in semiconductor manufacturing where precision and quality control are paramount. Transitioning FOUP production from Asia to the U.S. will likely reduce logistics complexities and lead times for North American customers. The state-of-the-art center should enable Entegris to maintain stricter quality control and respond more quickly to customer specifications. This localization of manufacturing aligns with broader industry trends toward supply chain regionalization and could provide Entegris with a competitive advantage in serving U.S.-based semiconductor manufacturers.

The funding, which further supports Entegris’ investment in the U.S. semiconductor industry, will be used for its new manufacturing center of excellence in Colorado Springs.

BILLERICA, Mass.--(BUSINESS WIRE)-- Entegris, Inc. (Nasdaq: ENTG), a global leader in advanced materials science, and the U.S. Department of Commerce have entered into a definitive agreement providing for up to $77 million in funding under the CHIPS and Science Act. The award, which follows the previously announced Preliminary Memorandum of Terms, will be received in installments based on achievement of agreed-upon milestones.

Entegris' Manufacturing Center of Excellence in Colorado Springs will create products critical to the future of semiconductor manufacturing in the U.S. (Photo: Entegris)

Entegris is the first supplier to semiconductor manufacturers to finalize the terms of its award agreement under the CHIPS and Science Act. This funding will support the company’s continued development of a state-of-the-art center in Colorado Springs designed to create products critical to the future of semiconductor manufacturing in the U.S.

“Expanding our presence in the U.S. is an important part of creating a stronger and more resilient domestic semiconductor ecosystem. We are very proud to be the first supplier to semiconductor manufacturers to receive this important federal support,” said Bertrand Loy, president and chief executive officer at Entegris.

The center, which is targeted to begin initial commercial operations in 2025, will support production of liquid filtration products, as well as semiconductor wafer carriers known as Front-Opening-Unified Pods (FOUPs). These solutions are critical to helping customers improve manufacturing yields. All Entegris FOUPs are currently manufactured in Asia.

Entegris’ new advanced manufacturing center will bolster Colorado’s position as a major technology hub and contribute to the local economy and job market. The center is expected to create approximately 600 new jobs in Colorado Springs over the next several years, spanning roles from entry-level manufacturing to engineering and operational leadership. Approximately 300 jobs have already been created during the center’s construction phase. The site will also be a Military Center of Excellence that aims to recruit 50% of its workforce from veterans and military families through partnerships with Hiring our Heroes, Mt. Carmel Veterans Service Center, the SEMI Veteran Foundation, and local military bases.

“Entegris has had a long-standing presence in Colorado Springs spanning three decades. We are proud to be playing a key role in reestablishing this region as a major technology hub and contributing to the local economy and job market,” added Tanja Postma, vice president of operations at Entegris in Colorado Springs. “We believe the future is bright for Colorado, our industry, and Entegris.”

About Entegris

Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 8,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan. Additional information can be found at www.entegris.com.

Cautionary Note on Forward-Looking Statements

This news release contains “forward-looking statements.” The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “forecast,” “project,” “should,” “may,” “will,” “would” or the negative thereof and similar expressions are intended to identify such forward-looking statements. These forward-looking statements may include statements about expectations regarding government incentives; the Company’s business plans and strategy and anticipated benefits therefrom; future production capacity; expected timing of completion of certain projects; future employment and development opportunities; and other matters. These forward-looking statements involve substantial risks and uncertainties that are difficult to predict and that could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, but are not limited to, the certainty of receiving all or any portion of the agreed-upon funding under the CHIPS Act; the Company’s ability to achieve the agreed-upon milestones for any reason; weakening of global and/or regional economic conditions, generally or specifically in the semiconductor industry, which could decrease the demand for the Company’s products and solutions; and other risk factors and additional information described in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including under the heading “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed on February 15, 2024, and in the Company’s other SEC filings. Except as required under the federal securities laws and the rules and regulations of the SEC, the Company undertakes no obligation to update publicly any forward-looking statements or information contained herein, which speak as of their respective dates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205864036/en/

Investor Contact:

Bill Seymour

VP of Investor Relations, Treasury & Communications

+ 1 952 556 1844

bill.seymour@entegris.com

Media Contact:

Jessica Emond

Senior Director of Corporate Communications

+1 978 436 6520

jessica.emond@entegris.com

Source: Entegris, Inc.

FAQ

How much CHIPS Act funding did Entegris (ENTG) receive?

Entegris received up to $77 million in funding under the CHIPS and Science Act from the U.S. Department of Commerce.

When will Entegris (ENTG) new Colorado Springs facility begin operations?

The new manufacturing center is targeted to begin initial commercial operations in 2025.

How many jobs will Entegris (ENTG) create at its new Colorado Springs facility?

Entegris expects to create approximately 600 new jobs over the next several years, with 300 jobs already created during the construction phase.

What products will Entegris (ENTG) manufacture at its new Colorado Springs facility?

The facility will produce liquid filtration products and semiconductor wafer carriers known as Front-Opening-Unified Pods (FOUPs).