January 5, 2024 /SemiMedia/ -- The U.S. Department of Commerce stated on January 4 that it planned to provide a US$162 million grant to Microchip Technology to strengthen the manufacturing capabilities of mature process chips in the United States.

The $162 million chip bill allocates about $90 million to modernize and expand manufacturing facilities in Colorado Springs, Colo., and about $72 million to expand manufacturing facilities in Gresham, Ore. The projects are estimated to nearly triple the company's semiconductor production at these locations, reducing reliance on foreign manufacturing and strengthening supply chain resiliency.

The grant is part of the U.S. Chip Act incentives, which the U.S. Department of Commerce said will bring more than 700 related jobs while reducing reliance on foreign factories.

The U.S. Department of Commerce stated that the shortage of MCUs in the past two years has affected more than 1% of global GDP. Through investments in MCU, the United States will help advance the U.S. economy and national security by further ensuring a reliable domestic supply of these chips.