The US Department of Commerce recently announced a preliminary agreement to provide Microchip Technology with $162 million of federal incentives under the CHIPS and Science Act. The company will use the funds to further support its semiconductor supply chain, decreasing its reliance on foreign chip foundries and strengthening its resilience.
The proposed funding would be split across two projects, the DoC said, with approximately $90 million going to “modernize and expand” Microchip’s plant in Colorado Springs, Colorado. The remaining money ($72 million) would be used to expand a plant in Gresham, Oregon. The two expansion projects are expected to create 700 new construction and manufacturing jobs, and are estimated to “nearly triple” Microchip’s semiconductor output at the aforementioned sites.
