Sen. Bob Casey lobbies for CHIPS funds at semiconductor manufacturer in Youngwood

A $280 billion pot of federal funding was made available last year when the federal CHIPS and Science Act was signed into law, and at least one Westmoreland County manufacturer is ready to expand rapidly if it can gain access to some of those funds.

Powerex Inc. said it could add at least 40,000 square feet to its facility in Youngwood and about 105 new high-tech career jobs if it is awarded some of the CHIPS funding.

Fortunately for Powerex, U.S. Sen. Bob Casey, D-Scranton, toured its facility Friday as part of his push to bring CHIPS funds to Pennsylvania. Powerex employs 215 workers, meaning CHIPS money could increase the company’s workforce by almost 50%.

Casey said it’s important to tour facilities such as Powerex’s to “learn about what Pennsylvania is making and producing.”

He said Powerex is well prepared to apply for funding. He said it is remarkable how much of Powerex’s equipment has application for military equipment such as fighter jets, tanks, helicopters and freight trains and other vehicles.

The CHIPS Act was passed to boost U.S. production of semiconductor chips, modules and other devices that had seen a shortage over the years, causing supply chain issues and increased costs.

Casey said, in 1990, America was making about one-third of semiconductors globally, but that has decreased to about 12%.

“There is an economic imperative connected to a place like this for the country,” Casey said. “We need to be supporting manufacturers like this.”

Casey said increasing domestic semiconductor production should also increase national security and push back against China, which has been growing its semiconductor industry rapidly and has the world’s largest semiconductor market.

“China is both an economic threat and a national security threat,” he said. “We can not only compete but out-compete China when it comes to this kind of manufacturing.”

Powerex fabricates 320,000 semiconductor chips annually, as well as producing 43,000 power semiconductor modules and 163,000 discrete power devices a year, according to the company. The company’s semiconductors can be found on missile systems, M1-A Abrams tanks, and other military vehicles operating in Ukraine.

The Youngwood facility has several floors and is filled with high-tech equipment such as 3D printers and workers in a “clean room” working on production. Casey praised a group of workers for manufacturing equipment that is so sophisticated and that “almost no one else in the world can make.” He said he wants to help make sure the company is given help to expand.

Casey said he supports federal funding going to boost manufacturers such as Powerex that are prepared, experienced and have a unionized workforce.

Manufacturing employment in the greater Pittsburgh region recently recovered to pre-pandemic levels, according to the U.S. Bureau of Labor Statistics. Casey said keeping that trend growing means figuring out ways to drive investment in historical manufacturing communities such as Youngwood by providing funding and incentives and letting the companies produce.

He said the CHIPS Act is one of those rare instances of bipartisan support with such a large amount of funding because Democrats and Republicans realized the task at hand.

“If you are going to create the conditions that our workers are on a level playing field and our manufacturers are on a level playing field, they will out-compete anyone in the world,” Casey said. “But you can’t say to our workers, ‘Hey — go into an economic battlefield and put one arm behind your back’ and see how it works out. You have to give them the tools and foundation they need to compete.”

This month, Casey announced he is running for reelection for a fourth term. Republicans already have begun to attack Casey and claim he is soft on China because of investments he made while state treasurer in 2006.

Casey pushed back on those accusations and said he has a strong record against China. He said he is working on a bill with Republican Sen. John Cornyn from Texas to ensure American firms investing in China, and other U.S. adversaries such as Russia, are reviewed by the federal government so those countries don’t get an advantage over America.

“The rise of China didn’t happen accidentally or automatically,” Casey said. “A lot of big American companies fueled that rise with their investment, and I think we have to begin to take a look at that.”