Rogue Valley Secures $6.7M CHIPS Act Funds

July 11, 2024 – The National Institute of Standards & Technology announced on July 1 that Rogue Valley Microdevices, a semiconductor manufacturing company, signed a non-binding preliminary memorandum of terms to receive up to $6.7 million under the CHIPS and Science Act to improve technology advancements and performance in Palm Bay, Florida.

Congress passed the $280 billion CHIPS and Science Act of 2022 to spur American leadership in semiconductor research, development, and production in response to rising competitiveness from China. Semiconductors are the microprocessors that power everything from smartphones and washing machines to advanced weaponry and artificial intelligence.

The funding will support the construction of the company’s facilities, including renovating the clean room and installing equipment. This initiative will enable the production of devices on 300mm wafers, strengthening the U.S. supply chain and creating over 75 jobs in the state. The company aims to start shipping its first wafers from Palm Bay, Florida, by early 2025, with full operations expected by mid-2025.

"As the first [microelectromechanical systems] foundry to secure proposed funding under the CHIPS and Science Act, Rogue Valley Microdevices is deeply committed to advancing onshore manufacturing of advanced microelectronics," said Rogue Valley Microdevices Founder and CEO Jessica Gomez. She noted plans to expand from their west coast foundry in Oregon to a new location on the Space Coast of Florida, which will further feature 300mm capability.

The company also aims to provide STEM-based early childhood education and after-school academic support by establishing on-site childcare in partnership with a local childcare provider using CHIPS funds. Additionally, it will invest in women- and minority-owned businesses in the development and innovation of specialized technologies.

Additional funds were also provided to the company to further support its construction, including $5 million from a Florida Department of Commerce loan and $3.2 million from other state incentives and grants. The company plans to utilize the Department of the Treasury’s Investment Tax Credit, anticipating it will cover up to 25% of qualified capital expenditures.

In June, RocketLab, an aerospace manufacturer and launch service provider, signed a preliminary memorandum of terms on monday that would provide up to $23.9 million in funding through the CHIPS and Science Act. It will use the money to create a more “robust and resilient supply of space-grade solar cells that power spacecrafts and satellites.”