Entegris inks deal with US government for up to $77M in Chips Act funding

Entegris (NASDAQ:ENTG) signed a definitive agreement with the U.S. Department of Commerce for up to $77M in funding under the CHIPS and Science Act.

Shares of Entegris fell about 2% on Thursday.

The Billerica, Mass.-based company had announced a preliminary memorandum of terms with the Department in June.

Entegris said it is the first supplier to semiconductor manufacturers to finalize the terms of its award agreement under the Chips Act.

The company noted that the funding will support its development of a state-of-the-art center in Colorado Springs aimed at creating products critical to the future of semiconductor manufacturing in the U.S.

The center is targeted to start initial commercial operations in 2025 and will support production of liquid filtration products, as well as semiconductor wafer carriers known as Front-Opening-Unified Pods, or FOUPs. These solutions are vital to helping customers improve manufacturing yields, according to the company.

Currently, all Entegris FOUPs are manufactured in Asia.

The center is expected to create about 600 new jobs in Colorado Springs over the next several years, with roles ranging from entry-level manufacturing to engineering and operational leadership. About 300 jobs have already been created during the center’s construction phase, the company noted.

The Commerce Department has announced preliminary deals with more than 20 companies and has finalized agreements with some companies, including Taiwan Semiconductor Manufacturing (TSM), Intel (INTC) and GlobalFoundries (GFS). The Biden administration is racing to get the deals finalized before President-elect Donald Trump returns to the White House.