On January 4th, the Biden administration announced a commitment to allocate $162 million to Microchip Technology, aiming to bolster the domestic production of computer chips. This marks the latest announcement associated with a 2022 law aimed at revitalizing semiconductor manufacturing in the United States.
The incentives comprise $90 million earmarked for enhancing a facility in Colorado Springs, Colorado, and an additional $72 million dedicated to expanding a factory in Gresham, Oregon, as confirmed by the Commerce Department. These investments are poised to empower Microchip Technology to triple its domestic production capacity, thereby diminishing reliance on foreign factories.
A significant portion of the funding will be allocated to the production of microcontrollers, which are essential in military applications and widely utilized in automotive, household appliances, and medical devices. Government officials anticipate that these investments will generate 700 jobs in construction and manufacturing over the next decade.
US to Spend More on Semiconductor Production in 2024
In late 2023, Gina Raimondo, U.S. Commerce Secretary, announced the anticipation of approximately twelve semiconductor funding awards in the next year. These awards, some in the billions, could significantly transform U.S. chip production. The initial announcement involves a $35 million award to BAE Systems in Hampshire for chip production for fighter planes under the "Chips for America" program approved by Congress in August 2022. Some of the companies that are seeking significant funding include Intel, Micron, and GlobalFoundries.
What is the CHIPS Act?
In August of 2022, President Biden signed the CHIPS Act allocating $54 billion for chips and public wireless supply chain innovation. $39 billion of that is budgeted for the financial assistance Commerce Secretary Raimondo is awarding. SiliconExpert’s blog U.S. Congress Passes CHIPS Act has the full details of the Act.