The US Department of Commerce has signed a non-binding preliminary memorandum of terms with Rogue Valley Microdevices (RVM) to provide up to $6.7 million in proposed direct funding under the CHIPS and Science Act.
Should the funding be granted, RVM would use it to build a pure-play microelectromechanical systems (MEMS) and sensor foundry facility in Palm Bay, Florida, in addition to bolstering its operations in Oregon.
The company says this would allow it to triple its current manufacturing capacity and make it the industry’s first MEMS pure-play foundry to offer 300mm capability, in addition to creating over 75 jobs in the state.
The wafers are expected to ship in early 2025, with completion of the facility due by the middle of the same year. Under the terms of the deal, RVM would also establish on-site child care and partner with a local childcare provider to deliver STEM-based early child care education and after-school academic support.
Microelectromechanical systems contain both mechanical and electronic parts and can be integrated with semiconductor components to help improve performance. MEMS have applications within the defense and biomedical science sectors. Currently, Rogue Valley Microdevices is one of the only US-based pure-play foundries specializing in the foundry services necessary for those industries.
“The proposed investment in RVM is another example of how the Biden-Harris Administration is making targeted investments across the semiconductor supply chain to reignite US leadership in semiconductor manufacturing,” said US Secretary of Commerce Gina Raimondo. “Because of President Biden’s CHIPS and Science Act, we are working to secure US-based companies a stable, domestic supply of MEMS technology when demand is increasing across the globe.”
Rogue Valley Microdevices founder and CEO Jessica Gomez added: “As the first MEMS foundry to secure proposed CHIPS and Science Act funding, Rogue Valley Microdevices is deeply committed to the onshore manufacturing of advanced microelectronics.
“We plan to use this capital infusion to increase production of the miniature, intelligent sensors that are critical to markets for which a robust supply chain is essential, including automotive, biomedical, and industrial.”
The $280bn CHIPS and Science Act was approved by Congress in July 2022, with $52bn of the overall funding package designated as subsidies for US semiconductor manufacturers. Funding from the act has also been earmarked for semiconductor R&D, growing a skilled semiconductor workforce, and incentives for the manufacturing of semiconductors and specialized tooling equipment.
To date, the US government has allocated more than $35bn in direct funding from the Act to companies including GlobalFoundries, Intel, TSMC, Samsung Electronics, and Micron. In April, Commerce Secretary Gina Raimondo said she expected all the grant money under the CHIPS Act to be allocated by the end of 2024.
RVM is the first women-and minority-owned business set to receive funding under the Act.
