Eaton Wins Contract to Help Power Semiconductor Research at NY CREATES’ New Facility in New York

Rhea-AI Summary

Eaton (ETN) has secured a $20M contract to support the construction of NY CREATES' new NanoFab Reflection semiconductor research facility at its Albany NanoTech Complex. The facility will feature a 50,000 square-foot cleanroom dedicated to semiconductor R&D, with completion expected in 2026.

The project is partially funded by New York State, NY CREATES, industry partners, and the $52 billion U.S. CHIPS & Science Act. Eaton will provide low- and medium-voltage switchgear and implement its Brightlayer electrical power monitoring system across the complex. The facility will support next-generation nanotechnology research and house the CHIPS for America EUV Accelerator.

The expanded complex will strengthen NY CREATES' integrated ecosystem, supporting partners including IBM, Applied Materials, Tokyo Electron, ASML, and Lam Research. Eaton reported revenues of $23.2 billion in 2023.

Positive

• Secured significant $20M contract for semiconductor facility project
• Project backed by $52B U.S. CHIPS & Science Act funding
• Strong 2023 revenue performance of $23.2B
• Strategic partnership with major tech companies

Negative

• None.

Insights

Contract Analysis Expert

The $20M contract win for Eaton represents a strategic positioning in the critical semiconductor infrastructure sector. The deal's value, while modest relative to Eaton's $23.2B annual revenue, carries significant strategic importance. This contract aligns with the $52B CHIPS Act initiative, potentially opening doors for additional contracts in the semiconductor industry's expansion.

The project's scope includes both hardware (low and medium-voltage switchgear) and software (Brightlayer monitoring system) components, indicating a higher-margin solution mix. The contract's completion timeline extending to 2026 suggests steady revenue recognition over multiple periods. The involvement with tier-1 semiconductor industry players like IBM, ASML and Applied Materials enhances Eaton's credibility in this high-growth sector.

Semiconductor Industry Analyst

The significance of this contract extends beyond its monetary value. NY CREATES' new 50,000 square-foot cleanroom facility represents a critical expansion of U.S. semiconductor research capabilities. The facility's focus on EUV technology, particularly through the CHIPS for America EUV Accelerator, positions it at the forefront of advanced node semiconductor development. Eaton's power management infrastructure will be important for maintaining the ultra-precise conditions required for semiconductor R&D.

The partnership with industry leaders like ASML and Tokyo Electron suggests this facility will play a vital role in developing next-generation semiconductor technologies. For investors, this positions Eaton as a key enabler in the U.S. semiconductor supply chain resiliency initiative, potentially leading to additional opportunities as more CHIPS Act-funded projects materialize.

• Eaton power distribution equipment and monitoring software establish resilient energy backbone for state-of-the-art semiconductor R&D

PITTSBURGH--(BUSINESS WIRE)-- Intelligent power management company Eaton today announced a contract valued at approximately $20M to help support the construction of the New York Center for Research, Economic Advancement, Technology, Engineering and Science’s (NY CREATES) new NanoFab Reflection semiconductor research and development facility at its Albany NanoTech Complex. Featuring a 50,000 square-foot cleanroom, the initiative will significantly expand the non-profit organization’s capabilities by providing a state-of-the-art environment to further the research, development and commercialization of essential computer chip technology. The project, expected to be complete in 2026, is partially funded by New York State, NY CREATES, its key industry partners and the $52 billion U.S. CHIPS & Science Act.

Eaton establishes resilient energy backbone for new state-of-the-art semiconductor research and development facility in New York. (Photo: NY CREATES)

“Semiconductors are the backbone of nearly every industry worldwide and their precise production relies heavily on dependable power,” said John Rhodes, president of Eaton’s electrical assemblies and residential solutions in the Americas. “We are confident our power management solutions and software meet NY CREATES’ rigorous standards for power quality, reliability and efficiency while upholding the highest levels of safety.”

The project expands NY CREATES’ Albany NanoTech Complex to strengthen its fully integrated research, development, prototyping and workforce development ecosystem that provides technology acceleration for on-site corporate partners, including IBM, Applied Materials, Tokyo Electron, ASML and Lam Research, among others. The new facility will also support next-generation nanotechnology research activities, including hands-on internships for students along with career opportunities, and will be home to the CHIPS for America EUV Accelerator, a flagship National Semiconductor Technology Center facility.

Eaton is supplying low- and medium-voltage switchgear to provide centralized control and protection for sensitive electronic devices across the new NanoFab Reflection building. Additionally, NY CREATES is applying Eaton’s Brightlayer electrical power monitoring system across its Albany NanoTech Complex to streamline facility management through visibility into energy systems that helps identify opportunities to reduce energy consumption and avoid unplanned downtime.

Learn more about how Eaton’s solutions help maximize the full potential of smart buildings.

Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re accelerating the planet’s transition to renewable energy sources, helping to solve the world’s most urgent power management challenges, and building a more sustainable society for people today and generations to come.

Eaton was founded in 1911 and has been listed on the New York Stock Exchange for more than a century. We reported revenues of $23.2 billion in 2023 and serve customers in more than 160 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250114179502/en/

Kristin Somers

+1.919.345.3714

Kristincsomers@eaton.com

Regina Parundik

Cobblestone Communications

+1.412.559.1614

Regina@cobblecreative.com

Source: Eaton

FAQ

What is the value of Eaton's (ETN) contract with NY CREATES?

Eaton (ETN) secured a contract valued at approximately $20 million to support the construction of NY CREATES' new NanoFab Reflection semiconductor research facility.

When will the NY CREATES NanoFab Reflection facility be completed?

The facility is expected to be completed in 2026.

What is Eaton (ETN) providing for the NY CREATES semiconductor facility?

Eaton is providing low- and medium-voltage switchgear and implementing its Brightlayer electrical power monitoring system for power management and facility control.

How large is the cleanroom in NY CREATES' new semiconductor facility?

The facility will feature a 50,000 square-foot cleanroom for semiconductor research and development.

What was Eaton's (ETN) revenue in 2023?

Eaton reported revenues of $23.2 billion in 2023.

Which major companies are partners in the NY CREATES Albany NanoTech Complex?

The complex supports corporate partners including IBM, Applied Materials, Tokyo Electron, ASML, and Lam Research.