Today, the Healey-Driscoll administration celebrated MACOM Technology Solutions Inc. (MACOM), the Lowell-based manufacturer that develops and supplies semiconductor components to the commercial and defense sectors, signing a preliminary memorandum of terms with the federal government for funding under the CHIPS for America program, marking a significant milestone in MACOM’s CHIPS manufacturing incentives pursuit.
The proposed funding, announced on January 14, 2025, by the U.S. Department of Commerce, will include support for a project to expand and modernize MACOM’s Lowell manufacturing facility and semiconductor wafer foundry with new clean rooms, equipment, wafer fabrication stations, chip-level packaging, and test capacity. The new project is estimated to add up to 150 new jobs, two-thirds of which are expected to be skilled positions. The expansion will require the addition of technicians, engineers, program managers, sales and maintenance positions that will be filled through partnerships with local educational institutions, including UMass Lowell and UMass Amherst.
“This is an exciting day for MACOM, the city of Lowell and the state,” said Massachusetts Governor Maura Healey. “We look forward to working together to drive economic growth in the Merrimack Valley and secure our nation’s domestic manufacturing capabilities.”
“When the CHIPS matching grant program was launched, we envisioned a project like MACOM’s to help grow high-tech jobs in a city with strong technology, education and workforce partners,” said Massachusetts Lt. Governor Kim Driscoll. “We’re confident that this project will help MACOM innovate and meet its need for highly skilled workers.”
In addition to the announced federal funding terms announced, the $172 million project will be supported by an expected $15.7 million from the Massachusetts Technology Collaborative (MassTech) as well as other federal tax incentives and private investment from MACOM. These incentives are contingent upon MACOM finalizing their federal funding award.
This is the second major microelectronics announcement in Lowell in the past year following the March 2024 launch of the new Lowell Innovation Network Corridor (LINC) project, a public-private partnership that aims to bring technology jobs and housing to the city. The project will include the establishment of a new research building on UMass Lowell’s East Campus that will house the microelectronics division of Cambridge’s Draper Laboratory.
“Through MACOM’s expansion, coupled with the LINC project, we have the opportunity to transform Lowell and the Merrimack Valley into a powerhouse for microelectronics and semiconductor development,” said Massachusetts Economic Development Secretary Yvonne Hao. “By adding critical domestic production and increasing our talent pool of highly qualified workers we will advance our standing in the CHIPS community.”
“I’m proud to help secure this historic federal investment through the CHIPS and Science Act to expand and modernize MACOM’s Lowell headquarters,” said Congresswoman Lori Trahan. “This funding will boost MACOM’s work to create good-paying jobs focused on researching, developing, and manufacturing the specialized semiconductors that keep us connected and are essential to defending our national security.”
“Congratulations to MACOM and the Lowell region which will receive a major boost thanks to the investments from the Federal CHIPS funds and the state’s matching dollars,” said Massachusetts Director of Federal Funds and Infrastructure Quentin Palfrey.
In May 2023, MassTech launched an online portal that created a “digital front door” for Massachusetts companies to request state support, a key requirement of the grant programs established under the CHIPS and Science Act. The portal was constructed in partnership with the Executive Office of Economic Development, the Massachusetts Office of Business Development (MOBD) and other state agencies that helped streamline the process to engage with state funding options.
“The state has proactively supported our microelectronics ecosystem by pursuing funding and partnership opportunities stemming from the CHIPS and Science Act. Innovative companies like MACOM are strategically focused on expanding microelectronics capacities in both commercial and defense applications. Their pursuits of CHIPS funding are being strengthened by the state’s federal matching commitment,” said Massachusetts Technology Collaborative Deputy Director and Chief Investment Strategist Ben Linville-Engler.
The Massachusetts-based incentives are part of the state’s efforts to bolster state-based organizations pursuing U.S. CHIPS and Science Act funding. In addition to support for individual submissions to the U.S. Department of Commerce’s incentive program, the state is also managing CHIPS-related investments through the work of the Northeast Microelectronics Coalition (NEMC) Hub, a division of MassTech that is leading a regional collaboration of more than 200 organizations, including MACOM. The Northeast has been the recipient of a number of other CHIPS-funded awards, including:
- A $37.8 million Microelectronics Commons award to the NEMC Hub to advance the development of microelectronics technologies in the Northeast.
- The launch of NEMC Hub’s $2.5 million Powering Regional Opportunities for Prototyping Microelectronics (PROPEL) program to help startups and small businesses to defray development costs, helping to accelerate the lab-to-fab transition of innovative microelectronics technologies.
- $1.5 million to boost four workforce development, education and student engagement programs across the Northeast.
- A $7.7 million award to establish new “open access” advanced nano-fabrication capability within the MIT.Nano research hub in Cambridge, a collaborative project with Applied Materials.
Statements of Support:
“The announcement that there could be up to 150 new well-paying jobs in Lowell as a result of the investment in MACOM is good news for Lowell and good news for the Commonwealth of Massachusetts,” said State Sen. Edward Kennedy (D-Lowell).
“This is welcome news for the city of Lowell and its residents. MACOM has been a leading technology company in the semi-conductor industry and an integral part of Lowell’s economy. For decades, MACOM has provided good paying jobs for our citizens and this announcement of federal and state funding will significantly enhance technology to expand opportunities for job growth in Lowell,” said State Rep. Rodney Elliott (D-Lowell).
“I am thrilled that MACOM could be able to expand operations and provide job opportunities thanks to funding from the CHIPS Act and State resources,” said State Rep. Tara T. Hong (D-Lowell).
“This funding is critical for MACOM to expand its manufacturing facility and high-performance semiconductor wafer foundry creating up to 150 new jobs through partnerships with UMass Lowell and UMass Amherst making this expansion a success for Lowell and the Merrimack Valley,” said State Rep. Vanna Howard (D-Lowell).