CHANDLER (dpa-AFX) - The U.S. Commerce Department said on Thursday it plans to award Microchip Technology (MCHP) $162 million in government grants to improve U.S. production of semiconductors and microcontroller units (MCUs).
The Department of Commerce provided the fund in federal incentives under the CHIPS and Science Act to support the onshoring of the company's semiconductor supply chain.
The department said the investment would enable Microchip to significantly increase its U.S. production of microcontroller units (MCUs) and other specialty semiconductors built on mature-nodes.
Microchip's microcontroller units and mature-node semiconductors are critical components in the production and manufacturing of electric vehicles and other automotives, washing machines, cell phones, airplanes, and the defense-industrial base.
'One of the objectives of the CHIPS and Science Act is to address the semiconductor supply chain shortages we saw during the pandemic that put our national security at risk and led to furloughed auto workers and higher prices for consumers. Today's announcement with Microchip is a meaningful step in our efforts to bolster the supply chain for legacy semiconductors that are in everything from cars, to washing machines, to missiles,' said Secretary of Commerce Gina Raimondo.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
