The company has committed to a multi-year investment plan that will help secure its IP and reshore critical operations away from Chinese-owned manufacturing.
IRVINE, Calif.—Menlo Microsystems, Inc. (Menlo Micro) reported that it completed the purchase of an asset in Tompkins County, New York, that will house the company’s first domestic production facility. Menlo Micro will manufacture its Ideal Switch® at the microelectronics fabrication plant, to be known as the Ideal Fab™. Manufacturing is estimated to begin in 2024, the company said in a release.
The company said it will invest $50 million in the Ideal Fab over the next three years, creating more than 100 high tech jobs at the site within the next half-decade. Menlo Micro is also committing to a multi-year growth strategy through diverse funding sources—including, potentially, additional government funds—to grow the Ideal Fab and further expand its U.S.-based manufacturing.
As part of Menlo Micro’s strategy, the company’s future domestic expansion would include additional investment exceeding $150 million and the phasing in of an additional 100-plus jobs, commensurate with growth, according to the release. Menlo Micro’s multi-year investment plan will help secure its IP, re-shore critical operations away from Chinese-owned manufacturing, and consolidate the supply chain of its Ideal Switch, the company said.
Menlo Micro said it has begun retrofitting the building to meet the unique and proprietary material science manufacturing requirements for its Ideal Switch. The new Tompkins County-based fab is expected to produce thousands of wafers per month and create high-quality, skilled, and in-demand jobs over the coming years as the company continues to invest in American manufacturing.
“Today’s announcement represents the first step toward significantly increasing the domestic production capacity of our Ideal Switch to help secure critical infrastructure and further strengthen America’s technology leadership,” said Russ Garcia, CEO of Menlo Micro, in a statement.
“We want to thank Senate Majority Leader Schumer for his leadership on the CHIPS and Science Act, which is directly supportive of and aligned with our plan to onshore our manufacturing capabilities,” Garcia continued. “We look forward to continuing to work with Sen. Schumer, Gov. Hochul, Sen. Gillibrand, Rep. Molinaro, and the entire New York delegation as we begin ushering in the next generation of electrification, delivering unprecedented cost and energy savings to essential U.S. industries. We believe this fab modernization project is in 100 percent alignment with the presidential directive on bringing semiconductor manufacturing back to the United States.”
According to Menlo Micro, New York State’s dedicated and skilled workforce, top-notch universities and research institutions, and its bustling innovation ecosystem made it the top choice for the company’s first domestic fab. As the company continues to grow its manufacturing presence in the United States, it is building on its deep roots in the state.
Built out of a decade-long effort at General Electric’s Global Research Center in Niskayuna, New York, Menlo Micro’s Research and Development arm is located at the Albany NanoTech Complex in Albany. In addition to the work based at General Electric, New York-based Corning Glass was an initial investor and key R&D partner, the company said.
“I applaud Menlo Micro for this major investment that will help drive Tompkins County and America’s economic future in tech manufacturing, and thank Governor Hochul for her partnership to help transform Upstate New York into a global center for innovation, high tech, and advanced manufacturing jobs,” said Senator Chuck Schumer. “The greater Ithaca area is unquestionably leading the charge in research and development and building the future of technology, and Menlo Micro will help further supercharge the region’s leadership, while helping secure America’s critical microelectronics supply chains that power everything from 5G communications to the power grid to aerospace engineering, with their switch technology made right here in Tompkins County.”
Menlo Micro has active university partnerships with the State University of New York Polytechnic Institute (SUNY Poly) and University at Albany. It said it hopes to expand its research and workforce development partnerships to Cornell University and the Finger Lakes region, with the launch of its new MEMS (micro-electromechanical systems) fab in Tompkins County. The company plans to continue expanding in New York.
To support Menlo Micro’s expansion in New York State, Empire State Development has awarded the company up to $6.5 million in performance-based Excelsior Jobs Tax Credits in exchange for 122 new jobs at its new Ithaca Facility, according to the release.
“Menlo Micro’s groundbreaking chip technology powers the tools and electronics that New Yorkers rely on every day, and, thanks to a remarkable partnership between local, state, and federal officials, their New York production facility will create more than 100 high-tech jobs and unlock millions of dollars in investment to support the entire region,” said New York Governor Kathy Hochul, in a statement. “I am excited to welcome Menlo to New York’s chip-making ecosystem as we continue our work to attract the innovative, 21st century businesses that will provide good-paying jobs, grow our advanced manufacturing sector, and move our economy forward.”
Menlo Micro’s Ideal Switch is reported to have applications across dozens of critical U.S. industries, including energy distribution and management, telecommunications, aerospace and defense, medical devices, consumer electronics, and more. It is expected to provide “unprecedented reductions in size, weight, and cost while creating increased reliability, linearity, and power due to key breakthroughs in material science,” the company said.
“Menlo Micro’s new fab in Ithaca will create 100 high-tech jobs and support efforts to make New York a global hub for advanced semiconductor manufacturing,” said Senator Kirsten Gillibrand, in the release. “I am proud to have supported the CHIPS and Science Act, which is spurring historic investments in New York State, strengthening American supply chains, and boosting domestic semiconductor research, development and production.”