Infinera Signs Non-Binding Preliminary Memorandum of Terms to Receive Up to $93 Million in CHIPS Act Funding
Rhea-AI Summary
Infinera (Nasdaq: INFN) has signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to potentially receive up to $93 million in direct funding through the CHIPS and Science Act. When combined with investment tax credits, this could result in over $200 million in total federal incentives.
The proposed funding aims to support the expansion and modernization of Infinera's semiconductor capabilities in Silicon Valley, California, and advanced test and packaging capabilities in Lehigh Valley, Pennsylvania. This expansion could increase domestic manufacturing capacity by an estimated factor of ten and create up to 1,700 manufacturing and construction jobs.
The funding is expected to strengthen America's supply chain, economic, and national security. Infinera's unique photonic semiconductors address the increased demand for bandwidth and open new markets inside data centers driven by AI workloads growth.
Positive
- Potential to receive up to $93 million in direct funding from CHIPS Act
- Total federal incentives could exceed $200 million including investment tax credits
- Planned expansion could increase domestic manufacturing capacity by 10x
- Project may create up to 1,700 new manufacturing and construction jobs
- Strengthens company's ability to compete with foreign adversaries
Negative
- Funding agreement is non-binding and preliminary
- Actual funding amount and benefits are not guaranteed
News Market Reaction 1 Alert
On the day this news was published, INFN declined 0.30%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Proposed funding, combined with investment tax credits, could result in more than
SAN JOSE, Calif., Oct. 17, 2024 (GLOBE NEWSWIRE) -- Infinera (Nasdaq: INFN) and the U.S. Department of Commerce have signed a non-binding preliminary memorandum of terms for Infinera to receive up to
This proposed funding would support the expansion and modernization of both Infinera’s semiconductor capabilities in Silicon Valley, California and its advanced test and packaging capabilities in Lehigh Valley, Pennsylvania, increasing the company’s existing domestic manufacturing capacity by an estimated factor of ten. Combined proposed funding for these two projects could create up to 1,700 manufacturing and construction jobs while strengthening America’s supply chain, economic and national security.
“We are grateful for the bipartisan efforts under the CHIPS and Science Act to increase semiconductor fabrication and packaging in the U.S. and protect our national and economic security,” said David Heard, Infinera CEO. “The proposed CHIPS funding will enable us to better secure our supply chain and compete more effectively with foreign adversary nations. Our unique photonic semiconductors address the increased demand for bandwidth from consumers while opening new markets inside the data center driven by the explosive growth in AI workloads.”
Infinera’s award of the proposed CHIPS funding would not have been possible without bipartisan support and partnerships with local, state and federal officials. This support is instrumental to the long-term success of these projects and the growth of advanced manufacturing in the U.S.
Additional Resource:
Biden-Harris Administration Announces Preliminary Terms with Infinera to Support Development of Semiconductor Technology Important for Communications and National Security
Contacts:
Infinera Media:
Anna Vue
Tel. +1 (916) 595-8157
avue@infinera.com
Infinera Investors:
Amitabh Passi, Head of Investor Relations
Tel. +1 (669) 295-1489
apassi@infinera.com
About Infinera
Infinera is a global supplier of innovative open optical networking solutions and advanced optical semiconductors that enable carriers, cloud operators, governments, and enterprises to scale network bandwidth, accelerate service innovation, and automate network operations. Infinera solutions deliver industry-leading economics and performance in long-haul, submarine, data center interconnect, and metro transport applications. To learn more about Infinera, visit www.infinera.com, follow us on X and LinkedIn, and subscribe for updates.
Infinera and the Infinera logo are registered trademarks of Infinera Corporation.
This press release contains forward-looking statements, including but not limited to statements regarding Infinera’s ability to secure CHIPS funding and investment tax credits, and the anticipated benefits of any such funding and tax credits. These statements are not guarantees of results and should not be considered as an indication of future activity or future performance. Actual results may vary materially from these expectations as a result of various risks and uncertainties. Information about risks and uncertainties that affect Infinera’s business is contained in the risk factors section and other sections of Infinera’s Quarterly Report on Form 10-Q for the Fiscal Quarter ended June 29, 2024 as filed with the SEC on August 2, 2024, as well as any subsequent reports filed with or furnished to the SEC. These reports are available on Infinera’s website at www.infinera.com and the SEC’s website at www.sec.gov. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies and can be identified by words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words. Infinera assumes no obligation to, and does not currently intend to, update any such forward-looking statements.
FAQ
How much CHIPS Act funding could Infinera (INFN) receive?
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