MACOM Technology Solutions (MTSI) Announces Strategic Capital Investment Plan

MACOM Technology Solutions Holdings, Inc. (“MACOM”) (Nasdaq: MTSI), is pleased to announce its long-term investment plan to modernize its Massachusetts and North Carolina semiconductor wafer fabrication facilities. MACOM’s five-year strategic investment plan of up to $345 million is supported by a recently executed preliminary, non-binding agreement with the CHIPS Program Office, which would provide for proposed direct funding from the U.S. Department of Commerce under the CHIPS and Science Act of up to $70 million. The preliminary terms propose up to $180 million to be supported by the CHIPS and Science Act through a combination of direct Federal funding, Federal Investment Tax Credits and State funding, including direct funding from the Massachusetts Technology Collaborative of up to $15.7 million as well as other incentives from the State of Massachusetts. It is expected that the balance of approximately $165 million would be self-funded by MACOM’s operating cash flow over the next five years.

This wafer fab capital investment plan supports MACOM’s growth and market positioning strategy to be an industry leading supplier of advanced RF, microwave and millimeter wave semiconductor technologies. MACOM’s innovative technology and product portfolio supports existing and emerging Defense, Telecommunications and Datacenter applications.

Massachusetts Wafer Fabrication Facility Investment Highlights

• Expansion of clean rooms within existing building footprint
• Modernization of current 100mm production lines, including GaAs, GaN, Silicon and other III-V materials
• Installation of 150mm GaN-on-SiC manufacturing capability for advanced node applications
• Infrastructure upgrades (HVAC, water, solar and power systems)

North Carolina Wafer Fabrication Facility Investment Highlights

• Expansion of clean rooms within existing building footprint
• Installation of 150mm wafer size production capabilities to support RF GaN-on-SiC processes
• Installation of advanced MOCVD epitaxial growth capabilities
• Infrastructure upgrades (HVAC, water, power systems)

“This plan will strengthen MACOM’s domestic semiconductor manufacturing capabilities, accelerate our growth strategy and enable us to better service our customers with leading technologies,” said Stephen G. Daly, President and Chief Executive Officer, MACOM.

MACOM expects to work with the CHIPS Program Office to finalize the details and terms of a definitive agreement.

About CHIPS for America

CHIPS for America has awarded over $33 billion of the over $36 billion in proposed incentives funding allocated to date. These announcements across 22 states are expected to create over 125,000 jobs. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced nearly $450 billion in private investments, catalyzed in large part by public investment. CHIPS for America is part of President Biden and Vice President Harris’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. Visit chips.gov to learn more.

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