The agreement marks the second tranche of money doled out from a bipartisan law signed in 2022, our colleague Brett Samuels reported.
The Commerce Department announced preliminary terms with Microchop Manufacturing, an Arizona-based company, which will allow it to “significantly increase its U.S. production of microcontroller units (MCUs) and other specialty semiconductors built on mature-nodes.”
As part of the deal, $90 million will be used to improve a plant in Colorado Springs, Colo., and $72 million will be used to expand a factory in Gresham, Ore.
The projects are expected to nearly triple the company’s semiconductor output, the Commerce Department said.
“Today’s announcement with Microchip is a meaningful step in our efforts to bolster the supply chain for legacy semiconductors that are in everything from cars, to washing machines, to missiles,” Commerce Secertary Gina Raimondo said in a statement.
“With this proposed investment, President Biden is delivering on his promise to rebuild America’s semiconductor supply chain, creating a more secure defense industrial base, lower prices for Americans, and over 700 jobs across Colorado and Oregon.”
The funding will come from the CHIPS and Science Act, a bipartisan law President Biden signed in 2022 that provides billions of dollars in incentives to the domestic semiconductor industry.
Read more in a full report at TheHill.com.
