Lehigh Valley technology manufacturers Coherent and Infinera plan to significantly increase their production capacity with federal funding announced recently. 
Coherent, which produces silicon carbide materials for semiconductors in Palmer Township, reached a tentative agreement on Jan. 16 for up to $79 million from the U.S. CHIPS and Science Act. The expansion would create 320 new manufacturing jobs and could increase Coherent’s capacity by more than 750,000 substrates per year and more than double the output of epitaxial wafers per year.
“This proposed investment reflects a shared commitment to strengthening domestic manufacturing, advancing cutting-edge technologies, and creating high-quality jobs in Pennsylvania,” said Rob Beard, Chief Legal and Global Affairs Officer for Coherent.
On Jan. 17, Infinera finalized a previously announced $93 million CHIPS award, for construction of new facilities in Bethlehem and California. Combined, they are expected to create 500 manufacturing jobs and increase Infinera’s domestic manufacturing capacity by an estimated factor of 10.
“We are honored to announce that we have finalized the agreement to receive CHIPS Act funding to increase photonic semiconductor fabrication and packaging in the U.S. and help protect our national security by enabling us to better compete with foreign adversary nations,” said David Heard, CEO of Infinera. “This funding will accelerate delivery of U.S. photonic semiconductor innovations to meet the demands of critical network infrastructure in the era of AI.”
The expansions will grow the Lehigh Valley’s legacy of global leadership in technological innovation. The first mass production of transistors, the forerunner to semiconductors, occurred in Allentown in 1951.
“The expansions of Coherent and Infinera are a fabulous continuation of the Lehigh Valley’s role as the original Silicon Valley. Building from the legacy of Bell Labs and Western Electric producing the first transistors here, the Lehigh Valley’s semiconductor and tech sectors continue to grow as Infinera and Coherent expand their production here,” said Don Cunningham, President and CEO of Lehigh Valley Economic Development Corporation (LVEDC).
“The CHIPS Act has helped to invigorate and grow the tech sector in a region that’s home to Intel, Broadcom, Infinera, Coherent, and about 30 other hardware technology companies,” he said.
Collectively, the industry employs about 1,500 people who are developing, producing, and assembling semiconductors that are relied on by brands such as Google, Microsoft, Meta, AWS, AT&T, Verizon, Netflix, and Nokia.
“As demand for semiconductors continues to grow, Pennsylvania will continue to position itself as a leader in innovation, with a supportive, thriving business climate that helps companies compete on a global scale,” Gov. Josh Shapiro said. “From advanced manufacturing to the research and development of new technology like advanced chip packaging, novel assemblies, power management, and materials beyond silicon, Pennsylvania has all the resources to be a world leader in chip manufacturing.”
The bipartisan CHIPS and Science Act was passed in 2022 to increase domestic production of semiconductors, protecting national security and expanding the country’s tech economy.
“Thanks to the bipartisan CHIPS and Science Act, we are making targeted investments up and down the semiconductor supply chain to revitalize semiconductor manufacturing in the United States and advance U.S. economic and national security,” said U.S. Secretary of Commerce Gina Raimondo.
Coherent plans to use the funding to expand its existing manufacturing facility and increase production capacity of 150mm and 200mm silicon carbide substrates, an important bandgap material with end uses in energy and military applications.
The funding would support the expansion of the facility’s silicon carbide epitaxial wafer manufacturing capacity, back-end of line processing, electronic performance, and reliability testing capabilities.
“By expanding our production capabilities for silicon carbide substrates and epitaxial wafers, Coherent is poised to drive innovation and meet the growing demand for materials that power energy and advanced applications,” Beard said.
In addition to the 320 manufacturing jobs, the expansion is expected to create 40 construction jobs.
Infinera designs, manufactures, packages, assembles, and tests optoelectronic packages and modules built around its unique optical, compound semiconductor photonic integrated circuits.
The $93 million in CHIPS funding will support construction of a new advanced testing and packaging facility in Bethlehem, and a new fab in California.
The company’s current advanced testing and packaging facility in Upper Macungie Township employs about 300 people. Chips produced in California are sent to the 60,000 square-foot operation. They are tested for quality and assembled into modules to be inserted into optical transport equipment used for networking, cloud connectivity, and data center interconnect services.
Coherent and Infinera were part of a coalition led by LVEDC in 2023 that applied to be designated as a Tech Hub by the U.S. Economic Development Administration. While unsuccessful, the process built relationships between the region’s technology companies, colleges and universities, workforce development, labor organizations and others who are continuing to work together to expand the Lehigh Valley’s semiconductor and technology sector.
LVEDC showcased the Lehigh Valley’s history of technological innovation at its Fall Signature Event in 2023, “Lehigh Valley’s Technology Sector: Yesterday, Today and Tomorrow.”
The event included speakers and panelists from Intel®, Broadcom, iDEAL Semiconductor, Lehigh University, Ben Franklin Technology Partners of Northeastern Pennsylvania, and the Pennsylvania Department of Community & Economic Development.
They told the crowd of about 200 at Iacocca Hall at Lehigh University why the Lehigh Valley is home to so many technology companies – because there is a deep pool of skilled workers here.
“It's like so many advanced industries, it really is about the talent and the people,” said Wayne Barz, Chief Investment Officer at Ben Franklin Technology Partners of Northeastern Pennsylvania.
(Infinera photo by Donna Fisher Photography)