united-states-commits-162-million-to-amp-up-microchip-technology

United states commits $162 million to amp up microchip technology

The U.S. Commerce Department said on Thursday it plans to award Microchip Technology $162 million in government grants to step up U.S. production of semiconductors and microcontroller units (MCUs) key to the consumer and defense industries.

- United States of America - UPDATED: January 5, 2024, 12:22 AM - 2 min read

The U.S. plans to award $162 million to Microchip, tripling production of essential semiconductor chips at two American factories.

United states commits $162 million to amp up microchip technology

Source: Freepik

The U.S. plans to award $162 million to Microchip, tripling production of essential semiconductor chips at two American factories.

The funds, part of the "Chips for America" program, aim to enhance domestic production, reducing dependence on foreign sources like China.

The award, yet to be finalized, includes $90 million for a Colorado facility and $72 million for an Oregon plant.

This strategic move aligns with the Biden administration's goal to secure the supply chain for crucial industries, such as automotive, defense, and aerospace. Microchip's CEO, Ganesh Moorthy, sees it as a direct investment in national and economic security.

This follows Microchip's earlier announcement of an $800 million investment to triple semiconductor production in Oregon. The Commerce Department's survey on legacy chip sourcing underscores efforts to mitigate national security risks, particularly related to China. Commerce Secretary Gina Raimondo anticipates more funding awards in 2024, shaping the landscape of U.S. chip production.