The Biden Administration will give $162 million to Microchip Technology Inc. to support the domestic production of computer chips, marking the second funding announcement linked to the CHIPS and Science Act of 2022.
According to the Associated Press, $90 million will be used to improve a plant in Colorado Springs, Colorado, while the other $72 million will go towards expanding a factory located in Gresham, Oregon, said the Commerce Department. A majority of the investment will go into making micro-controllers that are used by the military as well as in cars, medical equipment and household appliances.
The U.S. Department of Commerce said January 4
that the investment would allow Microchip Technology Inc. to triple its domestic production while reducing the organization’s dependence on foreign businesses. Government officials also said that the investment could create up to 700 manufacturing and construction jobs over the next ten years.
“Semiconductors are the key input in so many goods that are vital to our economy,” said Lael Brainard, the director of the White House National Economic Council.
In August 2022, President Biden signed the bipartisan CHIPS and Science Act providing over $52 billion to the U.S.’s semiconductor development and manufacturing industry. In December, the government announced the first grants under the program, providing $35 million to BAE Systems, which will use the money to expand its factory in New Hampshire.
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- Source: https://www.supplychainbrain.com/articles/38792-biden-administration-pledges-162m-to-expand-domestic-computer-chip-factories
