LOWELL, Mass. – MACOM Technology Solutions Holdings, Inc. (NASDAQ: NASDAQ:), a leading supplier of semiconductor technologies with a market capitalization of $9.46 billion, has announced a strategic plan to invest up to $345 million over five years in its Massachusetts and North Carolina wafer fabrication facilities. According to InvestingPro data, MACOM maintains excellent financial health with a robust current ratio of 8.35, indicating strong capability to fund its expansion plans. This initiative is supported by a preliminary agreement with the CHIPS Program Office, which proposes up to $180 million in funding and tax credits under the CHIPS and Science Act, including up to $15.7 million from the Massachusetts Technology Collaborative.
The investment aims to modernize MACOM’s existing facilities, expanding clean rooms and updating production lines with advanced manufacturing capabilities for radio frequency (RF), microwave, and millimeter wave technologies. These upgrades are anticipated to enhance MACOM’s product offerings for Defense, Telecommunications, and Datacenter industries. The company’s strong revenue growth of 12.52% over the last twelve months suggests market demand for its products remains robust. InvestingPro subscribers can access 15 additional key insights about MACOM’s growth prospects and financial performance.
In Massachusetts, the plan includes the expansion of clean rooms, modernization of 100mm production lines, installation of 150mm GaN-on-SiC manufacturing capability, and infrastructure upgrades. The North Carolina facility will similarly expand clean rooms, introduce 150mm wafer size production capabilities, install advanced MOCVD epitaxial growth capabilities, and upgrade infrastructure systems.
Stephen G. Daly, President and CEO of MACOM, expressed that this capital investment will bolster the company’s domestic manufacturing capabilities and accelerate its growth strategy, ultimately improving service to customers with leading-edge technologies.
The CHIPS and Science Act has already allocated over $33 billion in proposed incentives funding, expected to create over 125,000 jobs across 22 states. The CHIPS for America initiative, part of President Biden and Vice President Harris’s economic plan, aims to stimulate private sector investment, create jobs, and revitalize communities.
MACOM is working towards finalizing the details and terms of a definitive agreement with the CHIPS Program Office. This news is based on a press release statement from MACOM Technology Solutions Holdings, Inc. The company’s stock has demonstrated strong performance with a 55.01% return over the past year, though InvestingPro analysis indicates the stock is currently trading above its Fair Value. Investors can access comprehensive valuation metrics and detailed financial analysis through InvestingPro’s exclusive Research Reports, available for over 1,400 US stocks including MACOM.
In other recent news, MACOM Technology Solutions Holdings Inc. has reported record quarterly revenue of $200.7 million, with an adjusted earnings per share (EPS) of $0.73. For the full fiscal year, the company’s revenue reached $729.6 million, resulting in an EPS of $2.56. The company has also completed the acquisition of ENGIN-IC, strengthening its microwave IC design capabilities for defense applications.
MACOM has successfully closed a significant financial transaction involving the issuance of $344.3 million in convertible senior notes due 2029, along with approximately 1.6 million shares of common stock. The funds raised from this transaction, totaling around $49.9 million after expenses, are planned for general corporate purposes.
Needham & Company has adjusted its stock price target for MACOM to $150 from the previous $120, maintaining a Buy rating. This decision was influenced by MACOM’s robust forecast, particularly in the Data Center sector. The company’s future plans indicate an aim to surpass an annualized revenue run rate of $1 billion by fiscal year 2026 and anticipates sequential revenue growth across all end markets, especially in data centers with an expected 15% growth.
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