Boosting American Tech: $79 Million Investment in Coherent’s Pennsylvania Facility
The US Department of Commerce has announced a significant investment of up to $79 million in Coherent, a leading provider of materials and lasers for various industries. This funding, made possible by the CHIPS and Science Act, will support the expansion of Coherent’s existing manufacturing facility in Easton, Pennsylvania, creating approximately 360 new jobs.
A Legacy of Innovation
The Lehigh Valley region, where Coherent’s facility is located, has a rich history of innovation, dating back to the pioneering days of Bell Labs and Western Electric. Today, the area is thriving as a hub for semiconductor and tech companies, with industry giants like Intel, Broadcom, and Infinera calling it home. According to Don Cunningham, president and CEO of the Lehigh Valley Economic Development Corporation, “The CHIPS Act has been instrumental in revitalizing and growing the tech sector in our region.”
Enhancing Production Capacity
The investment will enable Coherent to increase its production capacity of 150mm and 200mm silicon carbide (SiC) substrates at its Easton plant. Additionally, the facility’s SiC epitaxial wafer manufacturing capacity, back-end processing, electronic performance, and reliability testing capabilities will also be expanded. SiC substrates are a critical component in energy and military applications, and this investment is expected to increase substrate capacity by over 750,000 units per year, more than doubling the output of epitaxial wafers annually.
Tax Incentives
Coherent plans to take advantage of the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which offers a 25% credit on qualified capital expenditures. This incentive will help support the company’s growth and investment in the region.
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