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Commerce Department Grants Microchip Technology $162M From CHIPS to Help With US Expansion

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Commerce Department Grants Microchip Technology $162M From CHIPS to Help With US Expansion

The Department of Commerce is set to provide an estimated $162 million in federal incentives to Microchip Technology under the CHIPS and Science Act of 2022.

The two organizations have entered into a non-binding preliminary memorandum of terms to support Microchip’s plan to increase its production capabilities in the United States. The CHIPS grant will be used in two projects: the modernization and expansion of a Colorado Springs, Colorado, fabrication facility and the expansion of a fabrication facility in Gresham, Oregon, the Commerce Department said.

The semiconductor manufacturer has been producing microcontroller units and mature-node semiconductors used in electric vehicles, washing machines and mobile phones, among other electronic products.

The CHIPS Act aims to promote investment in the U.S., encouraging semiconductor companies to invest more in the country to ensure that it has the needed semiconductors.

Since it was signed by President Joe Biden, several federal agencies have announced plans to fund a wide range of projects from the CHIPS fund. In September 2023, the Department of Defense announced a grant to eight Microelectronics Commons regional innovation hubs for developing six technologies, including 5G/6G, artificial intelligence and quantum technology.

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Category: Federal Civilian

Tags: CHIPS and Science Act Department of Commerce federal civilian funding Microchip Technology semiconductor