Microchip to expand capacity with $880 million investment
Microchip Technology says it plans to invest USD 880 million to expand its silicon carbide (SiC) and silicon (Si) production capacity at its Colorado Springs, Colorado manufacturing facility over the next several years.
The company says that it is ramping up production at its Colorado Springs fabrication campus in order to respond to growing semiconductor demand across a wide swath of industries.
A crucial part of the expansion is to develop and upgrade its 580,000-square-foot campus for increased SiC manufacturing for use in automotive/E-Mobility, grid infrastructure, green energy, and aerospace and defense applications. The expansion will also result in the creation of 400 new jobs at the campus.
The company currently employs more than 850 people at its Colorado Springs campus, where it produces products from 6-inch wafers. The manufacturing technology that Microchip is installing with the expansion will run on 8-inch wafers, which will significantly increase the number of chips produced at this location. The additional 400 jobs anticipated at the facility will range from production specialists to technical roles in equipment procurement and management, process control and test engineering.
“Microchip Colorado Springs has a long history of partnering with the city and state and we applaud their continued support of our efforts to advance the semiconductor industry in the U.S. The CHIPS and Science Act is already making a positive impact on our business through the Investment Tax Credit and we are seeking capacity expansion grants for several of our semiconductor factories, including our Colorado Springs factory. We see a bright future in the region made possible by great partnerships, state and local incentives, and a strong local talented workforce,” says president and CEO of Microchip Technology Ganesh Moorthy in a press release.
Microchip has also been approved for state and local incentives of approximately USD 47 million for the expansion.
“We are very pleased Microchip has selected its Colorado Springs facility as the site for such a significant investment and expansion. We estimate this will grow our local economy by approximately $1.4 billion over the next 10 years and create roughly 400 new high-paying jobs for those living in the Pikes Peak Region. Ramping up the production of semiconductors is critical to satisfying growing demand across many industries, and Colorado Springs is proud to be one of the key locations where this effort is taking place,” says Colorado Springs Mayor John Suthers.
