Business
Biden admin invests $162 million to boost domestic chip making
By Jake Beardslee · January 4, 2024
In brief…
- The Biden administration is providing $162 million to Microchip Technology to boost domestic semiconductor manufacturing.
- The funding will expand production capacity at Microchip factories in Colorado and Oregon.
- It's the second round of investments under the CHIPS and Science Act passed in 2022.
The Biden administration announced $162 million in funding on Thursday to support domestic semiconductor manufacturing, part of an effort to reduce reliance on overseas chip producers. The money will go to Microchip Technology to expand production at factories in Colorado and Oregon.
Microchip is based in Chandler, Arizona and makes microcontrollers used in autos, appliances, and medical devices. The funding will help triple its domestic production capacity.
“Semiconductors are the key input in so many goods that are vital to our economy,” said Lael Brainard, director of the White House National Economic Council, ABC News reported. She said greater U.S. production of chips would have reduced supply problems that drove inflation higher last year.
The $162 million investment is the second round of funding under the CHIPS and Science Act, a law passed in August 2022 that provides over $52 billion to boost semiconductor manufacturing in the U.S. The Biden administration has emphasized building domestic tech manufacturing to improve supply chain resilience.
The first grants under the law went to BAE Systems in December to expand a New Hampshire semiconductor factory supplying chips for military aircraft. Additional funding announcements are expected this year as the administration aims to reduce reliance on foreign chipmakers.
The incentives are part of a broader strategy to strengthen domestic tech production and reduce vulnerability to overseas supply disruptions.