Biden Administration Awards $162 Million to Expand Computer Chip Factories in Colorado and Oregon
Marked as the second funding announcement tied to a 2022 law targeted at reviving U.S. semiconductor manufacturing, The Biden administration is providing $162 million to Microchip Technology to support the domestic production of computer chips.
As announced by the Commerce Department, The investments would enable Microchip Technology Inc., which is based in Chandler, Arizona, to triple its domestic production and reduce its dependence on foreign factories.
The incentives also include $90 million to improve a plant in Colorado Springs, Colorado, and $72 million to expand a factory in Gresham, Oregon.
A bulk of the money would also be used to fund the making of microcontrollers, which are used by the military, in autos, household appliances and medical devices. Government officials said they expected the investments to create 700 construction and manufacturing jobs over the next decade.
According to Lael Brainard, Director, White House National Economic Council, the funding would help to tame inflation.
“Semiconductors are the key input in so many goods that are vital to our economy,” said Brainard, adding that greater U.S. production of chips would have reduced the supply problems that caused the cost of autos and washing machines, among other goods, to rise as the country emerged from the coronavirus pandemic in 2021.
