Healey-Driscoll Administration Congratulates Analog Devices for Winning up to $105 Million in Federal CHIPS Funding

The Healey-Driscoll administration congratulates Analog Devices, Inc. (ADI), headquartered in Wilmington, on the signing of a preliminary memorandum of terms with the federal government through the CHIPS Program Office. Once finalized, the federal award will be supported by a state investment from the Massachusetts Technology Collaborative (MassTech) of up to $10.17 million, with eligibility for $4.3 million in state tax incentives and $250,000 in state workforce funding. The proposed investment in ADI would support the expansion and modernization of two manufacturing and advanced R&D facilities in Chelmsford.

ADI expects to receive direct funding from the U.S. Department of Commerce under the CHIPS and Science Act of up to $105 million along with Federal Investment Tax Credits to support the expansion and modernization of three ADI locations, including the one in Chelmsford.

“We’re so proud that ADI, a global semiconductor leader, is based right here in Massachusetts,” said Governor Maura Healey. “This proposed award will help them expand, compete and grow their product lines, helping to strengthen our domestic manufacturing capabilities and protecting our critical technical and national security supply chain.”

“ADI has crafted an expansion plan that will increase our state and our country’s competitiveness and bolster our domestic supply chains,” said Lt. Governor Kim Driscoll. “At the same time this will create a workforce development plan that will bring new workers into this rapidly expanding sector.”

The news was announced on January 16, 2025 by the U.S. Department of Commerce and the CHIPS for America Incentive Program for Commercial Fabrication Facilities managed by the National Institute of Standards and Technology (NIST). The investment in Massachusetts would enable the company to increase radio frequency (RF) module production output for its manufacturing and test facility, expanding capacity for commercial, space, and defense applications as well as new commercial phased array antenna and sensor solutions.

“ADI is at the forefront of innovation in the expansion of U.S. semiconductor manufacturing,” said Analog Devices CEO and Board Chair Vincent Roche. “Our focus on enabling innovation at the intelligent edge is driving advancements in process technologies that are critical to our global customer base. This investment will help us strengthen our workforce training and community partnerships, as well as expand our efforts to manage our environmental footprint.”

As ADI expands their operations, they plan to build on their partnerships with local universities, community colleges, and other education partners in the region, including the University of Massachusetts (UMass) Lowell, Nashua Community College, and several regional technical high schools. ADI’s partnership with UMass Lowell includes the aerospace and defense master’s fellowship program, through which ADI covers the full cost of tuition for employees to pursue a master’s degree in electrical engineering, computer science or mechanical engineering, and a manufacturing engineering certificate program.

 “ADI is committed to advancing U.S. global leadership and competitiveness in semiconductor manufacturing. This calls for a mix of investments, both in cutting-edge tools to build secure microelectronics and in the programs that will bring new talent into this sector,” said Massachusetts Economic Development Secretary Yvonne Hao.“We cannot lead the world with technology alone. We must have the trained workforce to make that future a reality.”

“As a multinational semiconductor company headquartered right here in Massachusetts, ADI supports the health care, automotive, consumer, and industrial industries,” said Massachusetts Director of Federal Funds and Infrastructure Quentin Palfrey. “This funding will bring real change to people’s lives – now and for future generations.”

“This news provides momentum for both ADI and for the tech and innovation sector here in Massachusetts,” saidMassTech CEO Carolyn Kirk. “When we launched the match program in 2023, this was the type of competitive award we hoped would be recognized by the federal government. This is an important milestone for our state and for our work with the CHIPS program.”

“ADI has been a core partner in launching the MassTech-led Northeast Microelectronics Coalition (NEMC) Hub,”said MassTech Deputy Director and Chief Investment Strategist Ben Linville-Engler. “This proposed public-private investment in the expansion of capacity and capabilities at ADI will strengthen the broader Massachusetts and Northeast microelectronics ecosystem.”

In May 2023, MassTech solicited interest from Massachusetts companies through the CHIPS Capital Grant Program portal to provide funding commitments for companies applying to the federal CHIPS for America program. Matching incentives from state or local entities must be included in an application for federal funding.

In addition to support for individual submissions to the U.S. Department of Commerce’s incentive program, the state is also managing CHIPS-related investments through the work of the Northeast Microelectronics Coalition (NEMC) Hub, a division of MassTech that is leading a regional collaboration of more than 200 organizations, including MACOM.

The new awards to ADI are made in parallel to other CHIPS-funded programs that are spurring microelectronics and semiconductor growth across the Northeast, including:

In total, the NEMC Hub has received more than $100 million in Microelectronics Commons funding awards.