The U.S. will provide Microchip with a $162 million grant

     The U.S. Department of Commerce plans to grant $162 million in government grants to Microchip Technology to strengthen production of semiconductors and microcontroller units (MCUS) that are critical to consumers and national defense. The funding will allow Microchip to triple production of semiconductor chips and microcontroller units at two U.S. plants, officials said. U.S. Commerce Secretary Gina Raimondo said ina statement that the grant is a meaningful step in efforts to strengthen the traditional semiconductor supply chain in all areas.

     The $162 million grant will be divided into two parts, the first part of about $90 million for the expansion of a manufacturing facility in Colorado, and the second part of about $72 million for the expansion of a plant in Oregon. It is understood that the funding will allow Microchip Technology to triple chip production at two U.S. factories.

     According to the US Department of Commerce, MCUS play a vital role in automotive, mobile phone, aircraft manufacturing and other industries. During the pandemic, the shortage of MCUS has greatly impacted the global technology industry, even affecting more than 1% of global GDP. Therefore, the stable supply of MCUS contributes to the stability of the global economy.

     Ganesh Moorthy, president and CEO of Microchip Technology, said MCUS are the foundation for electronic applications in key industries such as automotive and medical. In order to meet the need for safety, Microchip Technology's facilities in Colorado and Oregon, in addition to following industry standard manufacturing processes and quality inspections, undergo an additional series of rigorous tests and certifications to ensure that its products are highly reliable and safe. Microchip plans to use the funds provided by the U.S. government directly to increase production capacity, research and development, equipment upgrades, and employee training to accelerate the company's technology innovation and market expansion.

     However, the $162 million subsidy has not yet been finalized. Microchip is a manufacturer of MCU, memory and analog semiconductors, listed in the United States, whose products include MCUS, sequential EEPROM, sequential SRAM, KEELOQ components, radio frequency components, thermal components, power and battery management analog components, as well as linear, interface and mixed-signal components.