Press Release
☷Biden Harris Administration Announces CHIPS Preliminary Terms with Microchip Technology to Strengthen Supply Chain Resilience for America s Automotive Defense and Aerospace Industries
U.S. Department of Commerce ( By Press Release office)
Jan 04,2024
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The Biden - Harris Administration has announced that they ' re working with Microchip Technology Inc . to strengthen America ' s supply chain for the automotive , defense , and aerospace industries . This partnership would create over 700 new jobs and ensure a stable domestic supply of microcontroller chips . The investment would support Microchip in increasing its production of important semiconductors used in various industries . President Biden signed the CHIPS and Science Act into law in 2022 to boost U . S . supply chains and create more jobs . This is the second announcement made under the Act by the Department of Commerce . Microchip ' s microcontroller units are vital components in the production of electric vehicles , cell phones , and airplanes , among other things . By investing in Microchip , the Biden - Harris Administration aims to secure a reliable supply of these chips and strengthen national security . The proposed funding of around $162 million would be used to modernize and expand facilities in Colorado Springs , Colorado , and Gresham , Oregon . This would significantly increase semiconductor output and reduce reliance on foreign manufacturers . The investment would also create well - paying jobs in construction and manufacturing . The CHIPS and Science Act was created to address the supply chain shortages that occurred during the pandemic , which impacted national security and led to job losses and higher prices for consumers . Today ' s announcement with Microchip is a big step in our efforts to strengthen the supply chain for older semiconductors that are used in a wide range of products . This investment from President Biden will help rebuild America ' s semiconductor supply chain , create jobs , and make things more affordable for Americans . By investing in manufacturing in Oregon and Colorado , we can make semiconductors in America again and reduce our reliance on global supply chains . This collaboration between the government and industry will boost our economy , improve national security , and provide more job opportunities for American workers . Microchip Technology plays a crucial role in industries like aerospace , defense , automotive , and medical , and this funding will support their operations and contribute to our national and economic security . The Department has outlined the key terms for this funding opportunity , and after a thorough review process , final award documents will be negotiated with the applicant . Regarding CHIPS for America , the Department has received over 570 expressions of interest and more than 170 preliminary applications , complete applications , and concept plans for CHIPS Incentives . The Department is currently evaluating these applications to determine which projects will promote American economic security , attract private investment , and bring other economic benefits to the country . This announcement with Microchip Technology is the second announcement the Department of Commerce has made under the CHIPS and Science Act , and more announcements are expected in 2024 . CHIPS for America is a part of President Biden ' s plan to invest in America , encourage private sector investment , create well - paying jobs , increase domestic manufacturing , and revitalize underserved communities . It consists of the CHIPS Program Office , which handles manufacturing incentives , and the CHIPS Research and Development Office , which oversees R&D programs . Both offices are housed within the National Institute of Standards and Technology ( NIST ) at the Department of Commerce . NIST promotes American innovation and industrial competitiveness by advancing measurement science , standards , and technology , with the goal of enhancing economic security and improving our quality of life . NIST is well - suited to administer the CHIPS for America program due to its strong relationships with U . S . industries , deep understanding of the semiconductor ecosystem , and reputation for fairness and trustworthiness . To learn more , visit https://www . chips . gov .
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