Infinera Signs Non-Binding Preliminary Memorandum of Terms to Receive Up to $93 Million in CHIPS Act Funding

Core Points - Infinera has signed a non-binding preliminary memorandum with the U.S. Department of Commerce to potentially receive up to $93 million in funding under the CHIPS and Science Act, which could lead to over $200 million in total federal incentives when combined with investment tax credits [1][2][3] - The funding aims to expand and modernize Infinera's semiconductor capabilities in Silicon Valley and its advanced test and packaging capabilities in Pennsylvania, increasing domestic manufacturing capacity by an estimated factor of ten [2][3] - The proposed funding could create up to 1,700 manufacturing and construction jobs, thereby strengthening the supply chain and enhancing economic and national security [2][3] Company Insights - Infinera's CEO, David Heard, emphasized the importance of the bipartisan support for the CHIPS and Science Act in enhancing semiconductor fabrication and packaging in the U.S., which is crucial for national and economic security [3] - The funding will help Infinera secure its supply chain and improve competitiveness against foreign adversaries, particularly in meeting the growing demand for bandwidth driven by AI workloads [3] - Infinera is recognized as a global supplier of innovative optical networking solutions and advanced optical semiconductors, catering to various sectors including carriers, cloud operators, and enterprises [4]