The Department of Commerce and Microchip Technology Inc. have finalized an agreement to allocate $162 million in federal incentives from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act. The objective is to bolster America's supply chain by increasing the production of semiconductors within the country.
According to a press release by the Department of Commerce, this investment under the new agreement could potentially create up to 700 additional jobs in America. It is expected to significantly augment U.S. production of microcontroller units (MCUs) and enhance supply chain resilience for key sectors such as automotive, defense, and aerospace. The CHIPS Act, enacted in 2022, was originally designed to safeguard national security and generate better-paying jobs for American workers.
Secretary of Commerce Gina Raimondo stated, "One of the objectives of the CHIPS and Science Act is to address the semiconductor supply chain shortages we saw during the pandemic that put our national security at risk and led to furloughed auto workers and higher prices for consumers." She further added, "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." Raimondo also emphasized that "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 press release also underscored that Microchip's MCUs and mature-node semiconductors play a vital role in various industries including electric vehicles, automotives, household appliances like washing machines, cell phones, aviation industry as well as defense sector. The Biden-Harris Administration intends to invest $162 million from CHIPS funding into securing a reliable domestic supply of these chips. This funding will be divided between two projects with the goal of tripling the output of semiconductors produced at Colorado Springs and Gresham, reducing dependence on foreign foundries, fortifying supply chain resilience, and generating jobs in construction and manufacturing.
