Microchip Technology has been awarded $162m from the US Department of Commerce towards the production of semiconductors and microchip technology.
Microchip Technology supplies microchips for consumer and defence technology, including household white goods and cars.
The US Secretary for Commerce Gina Raimondo applauded the grant as a “meaningful step” towards consolidating the US’ semiconductor production industry.
The money towards Microchip Technology has been awarded as part of the US’ wider Chips for America scheme that aims to wean the US from foreign semiconductor producers.
Microchip Technology will use the money to expand a production plant in Colorado and Oregan.
The news comes alongside plans for Microchip Technology to expand its production in the UK, as announced today via a statement.
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The company announced a new research and design facility in Cambridge that will work on IoT and automotive solutions. Microchip Technology’s senior director Neel Das stated that the new facility will employ around 200 workers.
The US has been working to solidify its local production of semiconductors by allocating funding to US companies as well as introducing new trade controls that limit the export of sensitive technology needed in chip production.
These new controls, announced in October 2023, have temporarily blocked chipmaker ASML from exporting lithography equipment to China.