Powerex in the US is doubling its power packaging plant in Youngwood, Pennsylvania, with a $15m investment.

The expansion of Powerex, a subsidiary of Mitsubishi Electric of Japan, is set to be backed by a $3m from the US government under the CHIPS Act as well as a 25% capex tax credit.

The Youngwood plant packages semiconductor power modules for military programmes including the F-35 aircraft, as well as commercial and industrial applications. The proposed funding would be expected to nearly double capacity and modernize key equipment.

Established on January 1, 1986, Powerex is the result of a combination of the Power Semiconductor Divisions of General Electric and Westinghouse Electric, with an investment from Mitsubishi Electric. In 1994, Westinghouse sold its shares to General Electric and Mitsubishi Electric which took full control in 2017..

The expansion is estimated to create over 55 manufacturing jobs and the company has started a local workforce development strategy with regional schools including universities, colleges, high schools, and veterans programs. Powerex also participates in military workforce programs, including one called DOD SkillBridge, Pittsburgh Hires Veterans, the Pennsylvania Talent Pipeline Project, and state workforce programmes.

“This proposed investment allows us to meet rising demand with U.S.-made products while building a stronger future for our team and community. Powerex plays an important role in supporting U.S. Department of Defense programs, with over half of our power module production dedicated to military applications. This proposed funding would help Powerex mitigate supply chain risks and address the constraints brought on by the rising demand for our power modules,” said Joseph Wolf, CEO of Powerex.

“With this proposed funding, we’ll enhance our production capabilities and create new jobs, providing growth and advancement opportunities for our employees,”

Powerex has indicated it plans to claim the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which is 25% of qualified capital expenditures.