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Electronics Production |

US government issues $162m subsidy to Microchip Tech

The Biden administration has confirmed its second CHIPS and Science Act grant: USD 162 million to help Microchip Technology improve its facilities in Colorado and Oregon.

In August 2022, the US president signed the bipartisan CHIPS and Science Act, which ringfenced USD 52 billion to support the on-shoring of the country’s semiconductor supply chain.

In December, the Commerce Department pledged USD 35 million to BAE Systems to boost its chip-making output for military aircraft, including F-15 and F-35 jets. Now, it has followed up with USD 162 million for Microchip Technology. The Arizona-based firm says it will assign USD 90 million to improve a plant in Colorado Springs, Colorado, and USD 72 million to expand a factory in Gresham, Oregon.

The grant will enable the company to triple its domestic production of microcontroller units (MCUs) and other  semiconductors built on mature-nodes critical for automotive, commercial, industrial, defence, and aerospace industries. It will create over 700 direct construction and manufacturing jobs.

“One of the objectives of the CHIPS and Science Act is to address the semiconductor supply chain shortages we saw during the pandemic that put our national security at risk and led to furloughed auto workers and higher prices for consumers. Today’s announcement with Microchip is a meaningful step in our efforts to bolster the supply chain for legacy semiconductors that are in everything from cars, to washing machines, to missiles,” said Secretary of Commerce Gina Raimondo. 
 


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