The US government has allocated $162 million to Microchip Technology in order to assist in the production of computer chips within the country. This is the second funding announcement in relation to a 2022 law aimed at revitalizing semiconductor manufacturing in the US.

According to the Commerce Department, the incentives declared on Thursday consist of $90 million for upgrading a facility in Colorado Springs, Colorado, and $72 million for enlarging a factory in Gresham, Oregon. These investments will allow Microchip Technology Inc., headquartered in Chandler, Arizona, to triple its domestic output and lessen its reliance on overseas factories.

Much of the money would fund the making of microcontrollers, which are used by the military as well as in autos, household appliances and medical devices. Government officials said they expected the investments to create 700 construction and manufacturing jobs over the next decade.

Lael Brainard, head of the National Economic Council at the White House, stressed that the funding would assist in controlling inflation.

“According to Brainard, semiconductors play a crucial role in numerous essential goods for our economy. Increasing U.S. production of chips could have alleviated supply issues and prevented the price increase of items such as cars and washing machines as the nation recovered from the effects of the coronavirus pandemic in 2021.”

The rate of inflation has decreased, but the effects of the abrupt rise in prices have negatively impacted President Joe Biden’s public support.

In August 2022, the president of the Democratic party approved the bipartisan CHIPS and Science Act, allocating over $52 billion to enhance the production and creation of semiconductors within the United States.

The Commerce Department announced in December that it had reached an agreement to grant $35 million to BAE Systems. The company plans to use this funding to expand their New Hampshire factory, which produces chips for military aircraft such as the F-15 and F-35 jets.

Officials of the government anticipate making more financial pledges in the upcoming year.

Source: wral.com