The U.S. Department of Commerce has agreed to a preliminary deal with tech company Infera to invest $93 million in CHIPS Act funding for semiconductor manufacturing projects in California and Pennsylvania. 

The money will go toward the construction of a new chip fabrication facility in San Jose California, as well as an advanced testing and packaging facility for semiconductor components in Bethlehem, Pennsylvania. Once the facilities are up and running, they are expected to boost Infinera's domestic manufacturing capacity by 10 times, while creating 1,700 new jobs between construction and manufacturing. 

“The proposed CHIPS funding will enable us to better secure our supply chain and compete more effectively with foreign adversary nations," Infinera CEO David Heard said in an October 17 news release. "Our unique photonic semiconductors address the increased demand for bandwidth from consumers while opening new markets inside the data center driven by the explosive growth in AI workloads.”

The proposed facility in San Jose would include 40,000 square feet of cleanroom space, while the Bethlehem facility would have a dedicated wing for research and development in addition to its packaging capabilities.