June 26 (Reuters) -

American Chip manufacturing supplier Entegris ( ENTG ) said

on Wednesday that it has inked a preliminary deal with the Biden

administration for funding of up to $75 million to aid the

development of a new facility in Colorado Springs, Colorado.

"We're not just bringing leading-edge chip technology and

(factories) to the United States, we're also bolstering the

suppliers that make leading-edge manufacturing possible," U.S.

Secretary of Commerce Gina Raimondo said in a statement.

The announcement is the latest in a string of Chips and

Science grants as the U.S. seeks to expand domestic chip

production and lure away capital that might have been used to

build plants in China and the region. Big winners include South

Korean's Samsung, U.S.-based Intel, and Taiwan's TSMC.

Congress in 2022 approved the Chips and Science Act to

boost domestic semiconductor output with $52.7 billion in

research and manufacturing subsidies. Lawmakers also approved

$75 billion in government loan authority.

According to the Commerce Department, the project's

first phase would support the production of liquid filter

membranes and Front Opening Unified Pods (FOUPS), specialized

containers invented by Entegris ( ENTG ) to secure semiconductor wafers

when transported during the manufacturing process. Top

chipmakers including Intel, TSMC, Micron, and GlobalFoundries

are FOUP customers, the agency added.

The second phase would support the production of

advanced liquid filters, purifiers and fluid handling solutions,

Commerce said.

Sanctioned Chinese chip manufacturer SMIC has also been

an important customer for Entegris ( ENTG ).

Reuters reported in February

that the Commerce Department halted millions of dollars

worth of shipments of chipmaking materials and parts from

Entegris ( ENTG ) to SMIC's most advanced facility, after SMIC produced a

sophisticated chip for Huawei's Mate 60 Pro phone.

Reuters found no evidence that Entegris ( ENTG ) had violated any

U.S. laws or regulations.