Microchip Honored with Chips Act Award

After BAe Systems received the first award under the US Chips and Science Act, Microchip has now secured the second one - a $126 million subsidy for its fabs in Oregon and Colorado.

US Department of Commerce Secretary Gina Raimondo praised the Microchip grant, stating: "This is a significant step in our efforts to strengthen the supply chain for legacy semiconductors that are used in various industries."

Last year, Microchip unveiled an ambitious $800 million plan to triple production at its Oregon fab.

"Microchip Technology is a leading manufacturer of semiconductors that serve as the foundation for electronic applications in critical sectors such as aerospace and defense, automotive, and medical," said Microchip CEO Ganesh Moorthy. "The funding proposed to be received from the CHIPS and Science Act will directly contribute to enhancing our national and economic security. As a US-based company, Microchip's operations will continue to strengthen the national semiconductor supply chain and expand our workforce."

Lael Brainard, the director of the White House National Economic Council, emphasized that this grant will help reduce the US's reliance on global supply chains, which caused price surges and long wait times for essential goods during the pandemic.