Decision on Microchips new fab will take some time
The microcontroller specialist is planning to build a new 300mm fab somewhere in the US. Oregon has been touted as a potential location for the investment, but as of now, no decision has been made.
Last week Evertiq reported that Microchip Technology is contemplating expanding its operations in Gresham, Oregon and that several state lawmakers have been urging Governor Kate Brown to allocate fund to support Oregon position.
A positive decision from Microchip could result in an investment in the size of USD 3 billion and create up to 650 jobs in the region.
While no official decision has been reached Microchip did confirm to Evertiq that the company is looking to build a new 300mm fab – a project that would require over USD 5 billion of investment over the course of multiple years.
“Microchip has made substantial investments and commitments over the last 18 months to significantly expand capacity and employment at our Gresham site. Separately, Microchip is planning to build a large 300 mm fab which will require over five billion dollars of investment over multiple years. However, no decision has been made regarding the location and timing of this fab. The CHIPS & Science Act was only passed in August 2022, and the Act funding is essential to build a 300 mm fab. The earliest we expect funding decisions from the U.S. Department of Commerce is the second quarter of 2023. In the meanwhile, we are continuing to study the incentives available from various cities and states, and hence we will not have a site decision until that process is complete,” Ganesh Moorthy, President and CEO at Microchip Technology, told Evertiq in an emailed statement.