US sets aside USD 162 mln. for development of chips, semiconductors
WASHINGTON, Jan 4 (KUNA) -- US President Joe President Biden signed CHIPS and Science Act to "restore America's leadership in semiconductor manufacturing and ensure America's consumers, businesses, and military maintain reliable access to the chips that underpin nearly every aspect of our economy," the White House said in a statement on Thursday.
"We all experienced the impacts of global supply chain stress and semiconductor shortages during the pandemic, and the CHIPS and Science Act provides critical investments to build a robust, resilient American supply chain of semiconductors that power everything from home goods to electric vehicles to satellites," the statement quoted National Economic Advisor Lael Brainard as saying.
"Already as a result of President Biden's policies and actions in partnership with the private sector, supply chain stress has fallen from near record highs to record lows, and inflation has closely followed," she noted.
Today, the Department of Commerce announced the second preliminary memorandum of terms (PMT) for approximately USD 162 million dollars to be awarded to Microchip Technology, according to the statement. The chips and microcontroller units (MCUs) that Microchip fabricates are essential components in a wide range of consumer and defense products that are critical to American manufacturing, including electric which is only a fraction of the additional private investment that Microchip is making in these projects supply chain that impacts millions of American consumers and businesses.
As the Department of Commerce continues to make award announcements in the coming months, President Biden's Investing in America agenda will continue to demonstrate how it is delivering for hardworking Americans, creating good jobs, strengthening American supply chains, and protecting our national security.
Microchip's microcontroller units and mature-node semiconductors are critical components in the production and manufacturing of electric vehicles and other automotives, washing machines, cell phones, airplanes, and the defense-industrial base. Shortages of microcontrollers during the pandemic affected over one percent of global GDP.
By investing in Microchip, the Biden-Harris Administration would help advance U.S. economic and national security by further securing a reliable, domestic supply of these chips, the Commerce Dept. noted in a statement. The approximately USD 162 million in proposed CHIPS funding would be split across two projects: approximately USD 90 million to modernize and expand a fabrication facility in Colorado Springs, Colorado, and approximately USD 72 million to expand a fabrication facility in Gresham, Oregon. The projects are estimated to nearly triple the output of semiconductors the company produces at these sites, decreasing its reliance on foreign foundries and strengthening supply chain resilience, and creating good-paying jobs in construction and manufacturing.
On her part, Secretary of Commerce Gina Raimondo said, "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." "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 pointed out. "With this proposed investment, President Biden is delivering on his promise to rebuild America's semiconductor supply chain, creating a more secure defense industrial base, lower prices for Americans, and over 700 jobs across Colorado and Oregon," she added. (end) rsr.gb .
