Entegris (Colorado)

Project Summary

The Department of Commerce awarded Entegris up to $77 million in direct funding to support the construction of a state-of-the-art manufacturing center in Colorado Springs, Colorado. The center is being built in multiple phases: the first phase will support the production of Front Opening Unified Pods (FOUPs) and liquid filter membranes, and the second phase is expected to support the production of advanced liquid filters and fluid handling solutions. In addition to the manufacturing center, Entegris is committed to further expanding its R&D capabilities in the United States by the end of the decade. This investment will onshore critical semiconductor supply chain materials and solutions for leading-edge chip production. 

Economic and National Security Impact

Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. Notably, the company invented FOUPs, which are highly specialized containers that secure semiconductor wafers while they are handled and transported during the manufacturing process and are currently produced exclusively abroad. These internal transportation systems have dramatically enhanced the productivity of semiconductor manufacturing over the last two decades, with many of the world’s largest chipmakers, like Intel, TSMC, Micron, and GlobalFoundries, being major customers for these carriers. Entegris is also a global leader in the production of advanced membranes, chemical filters, and chemical storage drums that help with contamination control and the purification of processing chemicals in the semiconductor production process. As semiconductor technology continues to become more advanced, demand for these materials and solutions is rapidly increasing.

Workforce and Community Impact

Through Entegris’ semiconductor manufacturing operations, this investment is expected to create nearly 600 manufacturing jobs and has already created approximately 300 construction jobs in Colorado. To recruit, train, and retain the workforce needed for these projects, Entegris will implement a workforce strategy informed by the Biden-Harris Administration’s Good Jobs Principles and will receive up to $2 million in dedicated CHIPS funding to advance certain agreed-upon workforce development initiatives.

To advance its manufacturing workforce efforts:

• Entegris is partnering with Microchip Technology Inc., InnovaFlex, Pikes Peak State College, University of Colorado, Colorado Springs Chamber of Commerce and EDC, Pikes Peak Business and Education Alliance, as well as various school districts and universities, to collaborate on workforce development and create a self-sustaining ecosystem in Colorado Springs and the Mountain West region. 
• Entegris will also designate the site as a Military Center of Excellence that aims to recruit 50% of its project workforce from veteran and military families through partnerships with Hiring our Heroes, Mt. Carmel Veterans Service Center, the SEMI Veteran Foundation, and local military bases. 
• Entegris will invest in community outreach activities to organizations such as Pikes Peak State College, Colorado Technical University and organizations that serve former U.S. military service members.
• Entegris has committed to fund scholarships and grants for education and workforce training and to provide funding dedicated to supporting members of the military and military families. 
• As part of this announcement, Entegris will make commercially reasonable commitments to participate in a child care study and develop strategies to create affordable, accessible childcare for its employees.

To advance its construction efforts:

• Entegris will use commercially reasonable efforts to utilize registered apprentices, with a goal of at least fifteen percent (15%) of the total labor hours on construction of project facilities performed by qualified apprentices from either a Registered Apprenticeship Program or a State Apprenticeship Agency.

Environmental and Worker Safety Commitments

In connection with the CHIPS award, the Department is requiring Entegris to commit to the following environmental responsibility and worker safety measures in its operations. As is required for all CHIPS projects, Entegris’ project will comply with all applicable environmental laws, including the Clean Water Act, Clean Air Act, Endangered Species Protection Act, and the Resource Conservation and Recovery Act:  

• Public Reporting: Entegris will disclose annual progress toward enterprise-wide environmental goals, which may include:
  • energy (kWh) used, saved through conservation programs, and produced from clean energy sources;
  • water used, conserved, and recycled; and
  • total waste generated and percentage total hazardous and nonhazardous waste destined for a landfill, incinerator, recycling facility, or treatment facility.
• PFAS Management: Entegris will use commercially reasonable efforts to:
  • Participate in industry and government initiatives aligned with achieving viable PFAS substitutes and emission controls.
  • Participate in industry and government circular economy initiatives to recycle and mitigate fluoropolymer waste.

Entegris is also committing to the following worker safety measures:  

• Worker Safety Committee: Entegris will operate a workplace safety that focuses on feedback from workers and management and addresses any worker health and safety concerns.
• Adoption of Most Protective Occupational Exposure Limits: Entegris will apply the most protective occupational exposure limits (OEL) among published industry or U.S. Government health and safety standards (including National Institute for Occupational Safety and Health and American Conference of Governmental Industrial Hygienists standards), for chemicals used in the facility’s operations.

Financial and Commercial Terms

As stated in the CHIPS Notice of Funding Opportunity (NOFO) for Commercial Fabrication Facilities, CHIPS for America will disburse direct funding to the company for capital expenditures spent on the projects based on the completion of construction, technology, production, and commercial milestones. The CHIPS Program Office will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions. All CHIPS funding recipients are required to adhere to certain limitations pursuant to the CHIPS Act and NOFO regarding stock buybacks and national security guardrails, which limit the sharing of intellectual property.

Progress Photos

Credit: Entegris