Yung-Chung Kao, chairman of compound semiconductor manufacturer IntelliEPI, announced that the company has secured a subsidy of US$4.1 million under the Texas CHIPS Act, which will fund its factory expansion.
With the upcoming US presidential election, the progress of the US "CHIPS and Science Act" (CHIPS Act) is also garnering attention. Additionally, the company has completed the formal application for the federal CHIPS Act, which is currently under review by the Department of Commerce (DOC).
Kao pointed out that IntelliEPI is eligible for subsidies from the federal CHIPS Act and the Texas CHIPS Act as the two are managed by different agencies. The formal application for the federal CHIPS Act subsidy was submitted in June 2024 and is still under review by the DOC. The amount granted has not yet been determined but is expected to be between US$13 million and US$16 million.
It is reported that the federal government is accelerating the application approval process for subsidies due to the upcoming presidential election at the end of the year, intending to finalize the process before the election.
As for the Texas CHIPS Act, Kao mentioned that IntelliEPI has already passed the review by the committee and legislature, securing a subsidy of approximately US$4.1 million. The first installment of the Texas CHIPS Act subsidy is expected to be received in 2024, providing financial support for a factory expansion project.
According to IntelliEPI's plans, the expansion project will take place on land adjacent to their second plant in Texas, which will be converted into phase two of the second plant. Once this phase is completed, it will provide dedicated storage space for equipment and spare parts.
By improving the efficiency of equipment modification for resale and in-house maintenance, and by setting up an MBE epitaxy equipment production line, the company will further enhance product specialization, ensure ample production capacity, and help sustain the company's growth, thereby driving operational growth.
