Microchip Technology lands $162 million in CHIPS Act funding for factory expansion
Jan 6, 2024, 5:45 AM
(Microchip Technology Photo)
Microchip Technology Inc. has landed $162 million in federal CHIPS Act funding to boost semiconductor production, create 700 new jobs and expand its fabs in Colorado and Oregon.
The U.S Department of Commerce on Thursday announced the nonbinding award to Chandler-based Microchip Technology (Nasdaq: MCHP), which intends to invest $90 million in modernizing and expanding its fab in Colorado Springs, Colorado. The company plans to spend another $72 million to expand its fab in Gresham, Oregon, where a multiyear, $800 million initiative to triple production capacity is already underway, the Portland Business Journal reported.
The investment enables Microchip to significantly increase its U.S. production of microcontroller units and mature-node semiconductors, which are critical components for cars, cellphones, airplanes and the defense-industrial base, according to the Department of Commerce.
In a statement, Microchip CEO Ganesh Moorthy said the funding award is “a direct investment to strengthen our national and economic security.”