Home / Business / Biden Administration Allocates $162 Million to Enhance Computer Chip Production Facilities in Colorado and Oregon

Biden Administration Allocates $162 Million to Enhance Computer Chip Production Facilities in Colorado and Oregon

Spread the love

Biden Administration Allocates $162 Million to Enhance Computer Chip Production Facilities in Colorado and Oregon

Microchip Technology is set to receive $162 million from the Biden administration as part of efforts to bolster domestic computer chip production, marking the second funding announcement aligned with a 2022 law aimed at revitalizing U.S. semiconductor manufacturing. The financial incentives comprise $90 million earmarked for enhancing a facility in Colorado Springs, Colorado, and an additional $72 million allocated for the expansion of a factory in Gresham, Oregon, as confirmed by the Commerce Department. These strategic investments are expected to empower Microchip Technology to triple its domestic production capacity and diminish reliance on foreign manufacturing facilities.

A significant portion of the funds is earmarked for the production of microcontrollers, integral components utilized in military applications, automobiles, household appliances, and medical devices. Anticipated outcomes from these investments include the creation of 700 jobs in construction and manufacturing over the next decade, as stated by government officials. Lael Brainard, the Director of the White House National Economic Council, underscored that this funding is instrumental in addressing inflation concerns.

“Semiconductors serve as a crucial component in numerous goods essential to our economy,” stated Brainard, emphasizing that an increased production of chips within the U.S. would have mitigated the supply challenges responsible for the surge in costs of automobiles, washing machines, and other goods during the nation’s recovery from the 2021 coronavirus pandemic. While the inflation rate has subsided, the lasting impact of abrupt price hikes has taken a toll on President Joe Biden’s public approval.

In August 2022, President Biden approved the bipartisan CHIPS and Science Act, allocating over $52 billion to enhance the research and manufacturing of semiconductors within the United States.

In December, the Commerce Department unveiled its initial round of grants, confirming an accord to allocate $35 million to BAE Systems. The funds are designated for the expansion of a factory in New Hampshire, specializing in chip production for military aircraft, including F-15 and F-35 jets. Officials anticipate further financial commitments to be announced later this year.

About Vijendra

Check Also

Crypto Venture Funding Surges Following Bitcoin's Remarkable Performance, Marking First Increase in Nearly Two Years

Crypto Venture Funding Surges Following Bitcoin’s Remarkable Performance, Marking First Increase in Nearly Two Years

Spread the love The year 2023 witnessed a significant resurgence in the crypto industry, and ...