Biden admin to expand chip factories in CO and OR
The Biden Administration Invests $162 Million in Microchip Technology to Boost Domestic Production
The Biden administration has made a significant move to enhance domestic production of computer chips by announcing a $162 million investment in microchip technology. This strategic decision aims to strengthen the United States’ manufacturing capabilities and reduce reliance on foreign factories.
The U.S. Commerce Department has selected Microchip Technology, an Arizona-based manufacturer, to spearhead this expansion. With the allocated funds, a Colorado-based plant will undergo $90 million worth of improvements, while an additional $72 million will be used to expand a factory in Gresham, Oregon.
Investment Driven by the 2022 CHIPS and Science Act
This federal funding stems from the 2022 CHIPS and Science Act, a bipartisan law designed to bolster domestic manufacturing, secure supply chains, and enhance national security. The legislation includes a substantial budget dedicated to U.S. chip manufacturing.
As a result of this investment, the expansion is projected to generate 700 construction and manufacturing jobs over the next decade. Microchip Technology will triple its domestic production capacity, reducing its dependence on factories in Thailand and the Philippines.
“Semiconductors are a critical component in numerous goods that are vital to our economy,” emphasized Lael Brainard, director of the White House National Economic Council.
Government officials anticipate making further funding commitments throughout the year. The initial grant of the CHIPS Act, amounting to $35 million, has already been awarded to BAE Systems. This grant will support the expansion of a New Hampshire factory dedicated to producing chips for military jets.
How does the investment in microchip technology contribute to enhancing national security and ensuring a steady supply of vital components for various industries
The investment made by the Biden administration in microchip technology is a crucial step towards boosting domestic production and reducing reliance on foreign factories. With an allocation of $162 million, the U.S. Commerce Department has entrusted Microchip Technology, an Arizona-based manufacturer, to spearhead this expansion.
The funds will be used to improve a Colorado-based plant with an investment of $90 million, while an additional $72 million will be used to expand a factory in Gresham, Oregon. This strategic decision aims to strengthen the United States’ manufacturing capabilities in the microchip industry, which plays a vital role in various goods that are essential to the economy.
The investment is driven by the 2022 CHIPS and Science Act, a bipartisan law aimed at bolstering domestic manufacturing, securing supply chains, and enhancing national security. The legislation includes a substantial budget specifically dedicated to U.S. chip manufacturing. This federal funding is a significant boost to the microchip industry and will help create 700 construction and manufacturing jobs over the next decade.
By tripling its domestic production capacity, Microchip Technology aims to reduce its reliance on factories located in Thailand and the Philippines. This move not only strengthens the United States’ manufacturing capabilities but also ensures a steady and secure supply of microchips for various industries.
Lael Brainard, director of the White House National Economic Council, emphasized the critical role that semiconductors play in goods vital to the economy. The investment in microchip technology will not only enhance domestic production but also contribute to the overall growth and stability of the economy.
The government plans to make further funding commitments throughout the year to support the expansion of the microchip industry. The initial grant of $35 million from the CHIPS Act has already been awarded to BAE Systems, supporting the expansion of a New Hampshire factory dedicated to producing chips for military jets.
The investment in microchip technology by the Biden administration is a significant step towards boosting domestic production and reducing reliance on foreign factories. It not only strengthens the United States’ manufacturing capabilities but also enhances national security and ensures a steady supply of vital components for various industries. With further funding commitments expected, the microchip industry is set to thrive and contribute to the continued growth and stability of the economy.
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