The Biden administration has allocated $162 million to Microchip Technology to enhance semiconductor manufacturing, aiming to reduce reliance on foreign production, the White House and the US Department of Commerce announced on Thursday.
The funding of the 2022 CHIPS and Science Act includes $90 million for a Colorado Springs plant and $72 million for an Oregon factory. These investments are expected to triple Microchip's domestic output, which is crucial for military, automotive, and consumer electronics. The move is anticipated to generate 700 jobs over a decade and mitigate inflation by stabilizing the supply of semiconductors, a critical component in various industries.
"The chips and microcontroller units (MCUs) that Microchip fabricates are essential components in a wide range of consumer and defense products that are critical to American manufacturing, including electric, which is only a fraction of the additional private investment that Microchip is making in these projects supply chain that impacts millions of American consumers and businesses," National Economic Advisor Lael Brainard (pictured) said in a statement.
