The Biden-Harris Administration announced on Jan. 4 that the U.S. Department of Commerce and Microchip Technology Inc. have reached a non-binding preliminary memorandum of terms (PMT) to provide approximately $162 million in federal incentives under the CHIPS and Science Act to support the onshoring of the company’s semiconductor supply chain.
The approximately $162 million in proposed CHIPS funding would be split across two projects: approximately $90 million to modernize and expand a fabrication facility in Colorado Springs, Colorado, and approximately $72 million to expand a fabrication facility in Gresham, Oregon. The projects are estimated to nearly triple the output of semiconductors the company produces at these sites, decreasing its reliance on foreign foundries and strengthening supply chain resilience, and creating more than 700 jobs in construction and manufacturing.
President Biden signed the CHIPS and Science Act – part of his Investing in America agenda – into law in August 2022, with the goal of strengthening U.S. supply chains, creating jobs, protecting national securit, and advancing U.S. competitiveness.