$6.7M: US Makes First CHIPS Act Investment in a Women- and Minority-Owned Chipmaker

Introduction

The Biden administration recently made a significant move by investing in Rogue Valley Microdevices (RVM), a women- and minority-owned chip company. This marks the first investment under the CHIPS and Science Act into such a company, showcasing a commitment to diversity and inclusion in the tech industry. The $6.7 million funding will support the construction of a microelectromechanical system (MEMS) and sensor foundry in Palm Bay, Florida. This investment is expected to nearly triple RVM’s manufacturing capacity and create over 75 jobs, aligning with the U.S.’s broader strategy to reclaim its position as a global leader in chip manufacturing.

This company is one of the few U.S.-based pure-play MEMS foundries, and the funding will accelerate RVM’s customers’ market entry.

Background

Rogue Valley Microdevices (RVM) will receive up to $6.7 million in proposed direct funding under the CHIPS and Science Act.

This initiative is part of the U.S. government’s effort to bring chipmaking dominance back to the country.

The funding will support the construction of a microelectromechanical system (MEMS) and sensor foundry in Palm Bay, Florida.

MEMS devices are tiny, miniaturized systems with moveable parts used in various applications, from smartphones to military systems.

The company’s manufacturing capacity is expected to nearly triple due to the investment, and the foundry will create over 75 jobs in Florida.

“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 U.S. leadership in semiconductor manufacturing,” secretary of commerce Gina Raimondo said. “Because of President Biden’s CHIPS and Science Act, we are working to secure U.S.-based companies a stable, domestic supply of MEMS technology when demand is increasing across the globe.”

Why it Matters

This investment is crucial for several reasons:

Economic Growth and Job Creation: The $6.7 million funding will significantly boost RVM’s production capabilities, nearly tripling its manufacturing capacity. This expansion will create over 75 jobs in Florida, contributing to local economic growth and providing new opportunities in the tech sector.

Technological Leadership: By investing in a women- and minority-owned chip company, the Biden administration is making a statement about the importance of diversity and inclusion in the tech industry. This move is not only about economic growth but also about fostering a more inclusive and representative tech ecosystem.

Strategic Importance: MEMS devices are essential components in many advanced technologies, including smartphones, medical devices, and military systems. Ensuring that the U.S. has a stable, domestic supply of these critical components is vital for national security and technological leadership.

Reclaiming Chipmaking Dominance: The U.S. has been lagging behind other countries, particularly in Asia, in terms of semiconductor manufacturing. This investment is part of a broader strategy to reclaim the U.S.’s position as a global leader in chip manufacturing. The CHIPS and Science Act supports domestic chip production, reduces dependency on foreign suppliers, and ensures the U.S. remains at the forefront of technological innovation.

The Impact of RVM’s Expansion

RVM is a pure play MEMS foundry. It partners with companies that need a manufacturing partner to produce functional chips.

The foundry’s expansion will help RVM support its customers better. This will enable them to bring products to market faster. Unlike other CHIPS Act recipients, RVM focuses on biotech companies. They develop sensors, including those for cancer diagnostics. RVM also works with defense industry companies. They produce sensors and MEMS devices for military systems like navigation and LiDAR technology.

“Getting CHIPS funding for our project really means a lot to our ability to do this project quickly and get up and running so that we can continue to support our customers and their targets and growth strategy,”
Jessica Gomez, the chief executive of RVM,

The new foundry is set to produce its first wafers for shipment in early 2025, with the facility scheduled for completion by mid-2025. This MEMS foundry will be the first to offer manufacturing on the 300mm wafer, the largest size used for chip production.

The Biden administration investment in Rogue Valley Microdevices is a significant step towards reclaiming the U.S.’s dominance in semiconductor manufacturing. This move highlights the importance of diversity and inclusion in the tech industry.

It sets a precedent for future investments under the CHIPS and Science Act. By supporting RVM’s MEMS and sensor foundry expansion, the U.S. is boosting domestic chip production capabilities.

This ensures the U.S. remains at the forefront of technological innovation. The investment is crucial for enhancing the U.S.’s AI and semiconductor capabilities. It fosters economic growth, job creation, and technological leadership.