WASHINGTON – The Biden administration has announced an investment of $162 million to expand computer chip factories in Colorado and Oregon, in an effort to boost domestic production of semiconductors. The funding will be provided to Microchip Technology and is part of a wider initiative to revive U.S. semiconductor manufacturing.
Under the incentives, Microchip Technology will receive $90 million to improve its plant in Colorado Springs and $72 million to expand its factory in Gresham, Oregon, according to the Commerce Department. These investments will enable the company to triple its domestic production and reduce its reliance on foreign factories.
The funding will primarily be directed towards the making of microcontrollers, which are used in various industries, including the military, automotive, household appliances, and medical devices. The government expects the investments to create 700 construction and manufacturing jobs over the next decade.
Lael Brainard, director of the White House National Economic Council, emphasized the significance of this funding in addressing inflation concerns. Brainard stated that semiconductors are crucial components in many goods that are vital to the economy, and increased U.S. production will help mitigate supply chain issues that contributed to rising prices for autos and washing machines during the post-pandemic recovery in 2021.
President Joe Biden signed the CHIPS and Science Act in August 2022, allocating over $52 billion to support the development and manufacturing of semiconductors within the United States. In December, the Commerce Department announced the first grants under this act, providing $35 million to BAE Systems to expand a chip factory in New Hampshire, specifically for military aircraft production.
Further funding commitments are expected to be made throughout the year. The Biden administration is making a concerted effort to bolster domestic semiconductor production, improve supply chain resilience, and create job opportunities in the industry.
The expansion of computer chip factories in Colorado and Oregon will not only boost the U.S. semiconductor manufacturing sector but also contribute to the overall economic recovery. The investment in this critical industry will help meet the increasing demand for chips and address supply chain vulnerabilities exposed during the global pandemic.
The development of a robust domestic chip production capability is crucial to reducing dependence on foreign suppliers and ensuring national security. The United States aims to regain a competitive edge in the semiconductor industry, which is essential for maintaining global technological leadership.
The Biden administration’s funding announcement marks another significant step towards achieving these goals and aligns with the broader objectives of strengthening American industries, creating high-tech jobs, and promoting economic growth.
Overall, this investment is seen as a positive development that will not only enhance U.S. semiconductor production capacity but also contribute to addressing inflation concerns and supporting the country’s economic recovery from the pandemic. With further funding commitments expected, the United States is actively working to regain its position as a leader in the global semiconductor industry.
