The United States will invest 147 million euros in the expansion of Microchip Technology’s semiconductor factories in the states of Colorado and Oregon, the US Government led by Joe Biden announced this Thursday.
“The semiconductors and microcontroller units manufactured by Microchip are essential components of a number of consumer and defense products and are crucial to American production,” the US presidency (White House) highlighted in a statement.
Founded in 1989 and headquartered in Chandler, Arizona, Microchip Technology employs more than 22,000 people worldwide with manufacturing facilities in Tempe, Arizona, Gresham, Oregon, and Colorado Springs, Colorado, as well as in other countries like Thailand and the Philippines.
In fiscal year 2023 it had sales of 8.4 billion dollars (7.6 billion euros, at the current exchange rate).
Early last year, Microchip Technology announced its $800 million (€731 million) investment plan to triple semiconductor production at its Oregon factory.
The financing of 162 million dollars (147 million euros) announced today by the White House is the second of its kind, within the framework of a bipartisan law enacted by Biden in August 2022 that allocated 52,000 million dollars (47,400 million euros) to revitalize the semiconductor sector in the United States.
The first financing of this program allocated 35 million dollars (32 million euros) in December to the company BAE Systems, for the production of semiconductors for combat aircraft.
The Department of Commerce highlighted today that the US government’s support for the semiconductor industry includes $90 million (€82 million) for the modernization of the Microchip factory in Colorado Springs and $72 million (€65 million) for the expansion of a factory in Gresham.
“This investment in production in Oregon and Colorado points to the President’s objective [Joe Biden] manufacturing semiconductors again in the United States, reducing dependence on global supply chains that have caused price increases and long delays during the pandemic. [de covid-19]”said White House economic advisor Lael Brainard.
According to the Department of Commerce, the government funding “is only a fraction of the additional private investment” Microchip has made in its projects and will nearly triple the company’s output with the creation of more than 700 jobs.
Source: TSF
