Biden Administration Announces $162M to Expand Computer Chip Factories in Colorado and Oregon

January 4, 2024by Josh Boak, Associated Press
Biden Administration Announces $162M to Expand Computer Chip Factories in Colorado and Oregon
President Joe Biden speaks about his economic agenda at the Wisconsin Black Chamber of Commerce, Wednesday, Dec. 20, 2023, in Milwaukee. (AP Photo/Evan Vucci)

WASHINGTON (AP) — The Biden administration is providing $162 million to Microchip Technology to support the domestic production of computer chips — the second funding announcement tied to a 2022 law designed to revive U.S. semiconductor manufacturing.

The incentives announced Thursday include $90 million to improve a plant in Colorado Springs, Colorado, and $72 million to expand a factory in Gresham, Oregon, the Commerce Department said. The investments would enable Microchip Technology Inc., which is based in Chandler, Arizona, to triple its domestic production and reduce its dependence on foreign factories.

Much of the money would fund the making of microcontrollers, which are used by the military as well as in autos, household appliances and medical devices. Government officials said they expected the investments to create 700 construction and manufacturing jobs over the next decade.

Lael Brainard, director of the White House National Economic Council, emphasized that the funding would help to tame inflation.

“Semiconductors are the key input in so many goods that are vital to our economy,” said Brainard, adding that greater U.S. production of chips would have reduced the supply problems that caused the cost of autos and washing machines, among other goods, to rise as the country emerged from the coronavirus pandemic in 2021.

The inflation rate has since eased, but the scars caused by the sudden price increases have damaged President Joe Biden’s public approval.

In August 2022, the Democratic president signed the bipartisan CHIPS and Science Act, which provides more than $52 billion to boost the development and manufacturing of semiconductors in the United States.

In December, the Commerce Department announced the first grants by saying it reached an agreement to provide $35 million to BAE Systems, which plans to expand a New Hampshire factory making chips for military aircraft, including F-15 and F-35 jets.

Government officials expect to make additional funding commitments this year.

A+
a-

In The News

Health

Voting

Manufacturing

Biden Administration Announces $5B Commitment for Research and Development of Computer Chips

WASHINGTON (AP) — The Biden administration on Friday announced the investment of $5 billion in a newly established public-private consortium... Read More

WASHINGTON (AP) — The Biden administration on Friday announced the investment of $5 billion in a newly established public-private consortium aimed at supporting research and development in advanced computer chips. The National Semiconductor Technology Center is being funded through the CHIPS and Science Act. That 2022 law... Read More

United Airlines CEO Says Airline Will Consider Alternatives to Boeing's Next Airplane

The United Airlines CEO says he is “disappointed” in ongoing manufacturing problems at Boeing that have led to the grounding... Read More

The United Airlines CEO says he is “disappointed” in ongoing manufacturing problems at Boeing that have led to the grounding of dozens of United jetliners, and the airline will consider alternatives to buying a future, larger version of the Boeing 737 Max. United Airlines CEO Scott... Read More

Biden Administration Announces $162M to Expand Computer Chip Factories in Colorado and Oregon

WASHINGTON (AP) — The Biden administration is providing $162 million to Microchip Technology to support the domestic production of computer chips —... Read More

WASHINGTON (AP) — The Biden administration is providing $162 million to Microchip Technology to support the domestic production of computer chips — the second funding announcement tied to a 2022 law designed to revive U.S. semiconductor manufacturing. The incentives announced Thursday include $90 million to improve a plant in Colorado... Read More

Biden to Convene New Supply Chain Council, Announce 30 Steps to Strengthen US Logistics

WASHINGTON (AP) — President Joe Biden on Monday will convene the first meeting of his supply chain resilience council, using the event... Read More

WASHINGTON (AP) — President Joe Biden on Monday will convene the first meeting of his supply chain resilience council, using the event to announce 30 actions to improve access to medicine and needed economic data and other programs tied to the production and shipment of goods. “We’re determined... Read More

Biden Travels to Wisconsin to Talk About the Economy a Week Before GOP Debate

MILWAUKEE (AP) — In a show of preemptive counter-programming, President Joe Biden on Tuesday traveled to Wisconsin to highlight his economic policies in a... Read More

MILWAUKEE (AP) — In a show of preemptive counter-programming, President Joe Biden on Tuesday traveled to Wisconsin to highlight his economic policies in a state critical to his reelection fortunes, just a week before Republicans descend on Milwaukee for the party’s first presidential debate. His arrival in Milwaukee comes on the eve... Read More

Biden Pitching His Economic Policies as a Key to Manufacturing Jobs Revival

ALBUQUERQUE, N.M. (AP) — Bringing back factory jobs is one of the most popular of White House promises — no... Read More

ALBUQUERQUE, N.M. (AP) — Bringing back factory jobs is one of the most popular of White House promises — no matter who happens to be the president. Donald Trump said he'd do it with tariffs on imports. Barack Obama said companies would start “insourcing.” George W. Bush said tax... Read More

News From The Well
scroll top