Expanding Colorado and Oregon Computer Chip Factories with $162 Million from Biden Administration

Spread the love

The Biden administration is investing $162 million in Arizona-based Microchip Technology to promote domestic computer chip production.

It is the second funding announcement that is connected to a bill that will be passed in 2022 with the intention of revitalizing the semiconductor manufacturing industry in the United States. The Biden administration is contributing $162 million to Microchip Technology in order to encourage the domestic production of computer chips.

Expanding Colorado and Oregon Computer Chip Factories with $162 Million from Biden Administration
Expanding Colorado and Oregon Computer Chip Factories with $162 Million from Biden Administration

 

According to the Commerce Department, the incentives that were revealed on Thursday include a total of $90 million designed to upgrade a facility located in Colorado Springs, Colorado, and $72 million designed to expand a factory located in Gresham, Oregon. Microchip Technology Inc., which has its headquarters in Chandler, Arizona, would be able to lessen its reliance on facilities located in other countries and increase its domestic production by a factor of three thanks to the investments.

A significant portion of the funds would be used to finance the production of microcontrollers, which are utilized not only by the military but also in automobiles, home appliances, and medical devices. They anticipated that the investments would result in the creation of seven hundred jobs in the manufacturing and construction industries over the course of the following ten years.

The director of the White House National Economic Council, Lael Brainard, underlined that the financing will help bring inflation under control to a more manageable level. “Semiconductors are the key input in so many goods that are vital to our economy,” said Brainard. He went on to say that increased chip production in the United States would have diminished the supply issues that led to an increase in the prices of automobiles and washing machines, among other goods, as the nation emerged from the coronavirus pandemic in 2021.

 

Expanding Colorado and Oregon Computer Chip Factories with $162 Million from Biden Administration

In spite of the fact that the rate of inflation has decreased since then, President Joe Biden’s public approval has suffered as a result of the scars produced by the rapid price hikes. The CHIPS and Science Act, a bipartisan piece of legislation that the Democratic president signed into law in August 2022, allots more than 52 billion dollars to the US government to support semiconductor research and production.

In December, the Department of Commerce made the announcement that it had achieved a deal to provide $35 million to BAE Systems. BAE Systems intends to develop a factory in New Hampshire that manufactures semiconductors for military aircraft, including F-15 and F-35 fighters. The announcement was made in the context of the first grants. According to government officials, they anticipate making significant funding pledges this year.

 


Spread the love