From Fortune:

The Biden administration is providing $162 million to Microchip Technology for the production of computer chips, in line with a 2022 law to strengthen U.S. semiconductor manufacturing. The investment includes $90 million to upgrade a Colorado plant and $72 million for a factory expansion in Oregon, allowing domestic production to triple.

The funds will be used to produce microcontrollers, an essential component in various goods, including cars, household appliances, and medical devices. This investment is expected to create 700 construction and manufacturing jobs over the next decade and will address supply chain issues that led to inflation and rising prices.

Lael Brainard, director of the White House National Economic Council, emphasized that the funding would help to control inflation. The White House has seen public approval rating drops due to inflation and supply chain issues, and this initiative is part of the administration’s effort to mitigate these challenges.

The administration’s aim is to stabilize the economy by boosting U.S. production of crucial semiconductors. The bipartisan CHIPS and Science Act in 2022 includes over $52 billion to support the development and manufacturing of semiconductors in the U.S. This initiative is seen as a way to address inflation pressures resulting from supply chain issues. Additional funding commitments are expected in the coming year.



Read more: Microchip Technology receives $162 million from Biden administration to reduce U.S. dependence on foreign factories