Biden Administration Announces $162M Investment in Microchip Technology to Boost Domestic Semiconductor Production

The funding will support the expansion of two Microchip Technology facilities, expected to triple semiconductor output and create over 700 jobs.

The Biden-Harris administration has announced a preliminary agreement to provide Microchip Technology Inc. with approximately $162 million in federal incentives under the CHIPS and Science Act. The investment will support the onshoring of the company's semiconductor supply chain, significantly increase its U.S. production of microcontroller units (MCUs) and other specialty semiconductors, and create over 700 direct construction and manufacturing jobs.
The funding will be split across two projects: approximately $90 million will be used to modernize and expand a fabrication facility in Colorado Springs, Colorado, and approximately $72 million will be used to expand a fabrication facility in Gresham, Oregon.
The projects are expected to nearly triple the output of semiconductors the company produces at these sites, decreasing its reliance on foreign foundries and strengthening supply chain resilience.
Microchip's MCUs and mature-node semiconductors are critical components in the production and manufacturing of electric vehicles and other automotives, washing machines, cell phones, airplanes, and the defense-industrial base.
This is the second PMT announcement the Department of Commerce has made under the CHIPS and Science Act, with additional PMT announcements expected to follow throughout 2024.