Commerce Selects Microchip Technology for Second Round of Chips Act Funding
The Commerce Department announced on Jan. 4 that it has agreed to provide about $162 million to Microchip Technology under the Chips Act to nearly triple semiconductor production at the company’s facilities in Colorado Springs, Colorado, and Gresham, Oregon.
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The projects will reduce Microchip’s reliance on foreign foundries and strengthen U.S. supply chains, Commerce said. Microchip’s semiconductors are used by such industries as aerospace and defense, automotive, and medical.
The funding is the second federal grant that Commerce has announced under the Chips Act. The first, unveiled on Dec. 11, will provide about $35 million to defense contractor BAE Systems to improve its chip production facility in Nashua, New Hampshire (see 2312110028). Commerce said it plans to announce additional grants “throughout 2024.”
Commerce finalized its national security guardrails for Chips Act grant recipients in September, saying the measures will prevent the funding from being used to benefit certain “foreign countries of concern,” including China (see 2309220035).