Microchip Secures $162 Million CHIPS Act Funding in 2025 to Triple U.S. Chip Production
Microchip Technology Inc. receives a $162 million federal boost under the CHIPS Act to modernize and expand semiconductor manufacturing facilities in Colorado and Oregon, aiming to enhance U.S. supply chains.
The U.S. Commerce Department has awarded Microchip Technology Inc. a substantial $162 million grant through the CHIPS Act in 2024, designed to significantly increase domestic semiconductor and microcontroller production.
- $90 million will be invested in upgrading Microchip's Colorado Springs factory, modernizing operations to meet rising demand.
- $72 million is allocated to expand the Gresham, Oregon facility, enabling greater manufacturing capacity.
- This funding aims to triple production capabilities at both locations, reducing dependence on international suppliers and strengthening national supply chains.
Secretary of Commerce Gina Raimondo emphasized the importance of this initiative, stating, "The CHIPS and Science Act is a critical response to semiconductor shortages experienced during the pandemic, which impacted national security and consumer markets. This investment with Microchip is a pivotal step toward securing supply chains for essential semiconductors found in everything from automobiles to defense systems."
This marks the second major CHIPS Act grant approved by Congress, following a $35 million award to BAE Systems last month, reflecting a robust federal commitment to revitalize U.S. semiconductor manufacturing.
Despite a slight dip of nearly 1% in Microchip's stock price as of early Thursday afternoon, shares have surged over 18% in the past year, signaling strong investor confidence in the company's growth trajectory.
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