The US government has announced it will grant $162 million to microchip technology to boost chip production in the country.
The US Department of Commerce said the move will help to strengthen the resilience of supply chains for the country’s defence, aerospace and automotive industries and reduce reliance on foreign production.
The funding has been allocated under the CHIPS and Science Act which was made part of US law in August 2022. It will be split between two projects with around $90 million going towards the modernisation and expansion of a factory in Colorado and roughly $72 million being used to expand a factory in Oregon.
The US government claims the funding will triple the output of semiconductors and reduce the shortage of chips that the US is currently experiencing.
“One of the objectives of the CHIPS and Science Act is to address the semiconductor supply chain shortages we saw during the pandemic that put our national security at risk and led to furloughed auto workers and higher prices for consumers,” said secretary of commerce Gina Raimondo. “Today’s announcement with Microchip is a meaningful step in our efforts to bolster the supply chain for legacy semiconductors that are in everything from cars, to washing machines, to missiles.”
Raimondo added that the investment means President Biden is delivering on his promise to rebuild America’s semiconductor supply chain, create a more secure defence industrial base, lower prices for Americans, and generate over 700 jobs across Colorado and Oregon.