On January 16, 2025, Analog Devices, Inc. was announced as a recipient of funding from the U.S. CHIPS Act. This government support is part of a broader initiative to strengthen domestic semiconductor manufacturing and research capabilities.
While the specific amount of funding was not disclosed in this announcement, the company's executive summary indicates that potential CHIPS Act benefits are expected to support capital expenditures. These expenditures are projected to return to the long-term model of 4-6% of revenue in fiscal 2025.
This funding is significant for Analog Devices as it aligns with the company's strategic investments in enhancing its hybrid manufacturing model. The support is expected to bolster free cash flow and contribute to the resilience of its supply chain.
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