Microchip Technology gets $162 mln from U.S. government to step up chip production
Microchip Technology (Getty Images)
The U.S. Commerce Department aims to give Microchip Technology $162 million to boost the production of semiconductors and microcontroller units that are important elements in cars, phones, airplanes, as well as defense goods, Reuters reports.
With this money, Microchip can make three times more chips at two U.S. factories. The announcement comes after Microchip already planned to spend $800 million to produce more chips in Oregon.
Microchip's CEO, Ganesh Moorthy, said the award is "a direct investment to strengthen our national and economic security."
Government stimulates domestic production
The award is part of a $52.7 billion program called Chips for America, approved by Congress in August 2022 to support making more computer chips in the U.S. The goal is to reduce reliance on other countries, especially China, for these important tech elements.
This is the second award in the program. The first one, $35 million, went to a BAE Systems facility to make chips for fighter planes. The new award to Microchip is not final yet, but if it happens, $90 million will go to a factory in Colorado, and $72 million will go to a factory in Oregon.
The Commerce Department is overwatching on how U.S. companies get their chips, especially from China, to reduce risks to national security. They plan to make more awards for chip production in 2024, possibly totaling billions of dollars, which could completely change the amount of computer chips made in the U.S.
Microchip Technology
Microchip Technology Incorporated is a big American company that creates small electronic parts. These include microcontrollers, various types of circuits, and devices for managing power, batteries, and connecting different gadgets. It is based in Arizona and has factories in Oregon and Colorado. In 2023, the company made $8.4 billion in sales.
We also reported that the Israeli government granted Intel $3.2 billion for chip plant growth and Chinese companies were buying up American chip manufacturing equipment despite several restrictions imposed by the United States.
