The U.S. Commerce Department has announced its intention to grant $162 million to Microchip Technology (MCHP.O) through government awards aimed at enhancing the production of semiconductors and microcontroller units (MCUs) crucial to the consumer and defense industries.
The proposed funding will enable Microchip to triple the production of mature-node semiconductor chips and microcontroller units at two of its U.S. facilities. These components play a pivotal role in various applications, including cars, washing machines, cell phones, internet routers, airplanes, and the defense-industrial base.
Commerce Secretary Gina Raimondo emphasized the significance of the award, stating that it is a substantial step in fortifying the supply chain for legacy semiconductors, which are integral to numerous products. The initiative aligns with the U.S. government’s objective to shift the production of such chips away from foreign sources, particularly China.