CHIPS terms with microchip technology to strengthen supply chain resilience for America’s automotive, defense, and aerospace industries

This week, the Biden-Harris Administration announced that the U.S. Department of Commerce and Microchip Technology Inc. have reached a non-binding preliminary memorandum of terms (PMT) to provide approximately $162 million in federal incentives under the CHIPS and Science Act to support the on-shoring of the company’s semiconductor supply chain. This investment would enable Microchip to significantly increase its U.S. production of microcontroller units (MCUs) and other specialty semiconductors built on mature nodes critical to America’s automotive, commercial, industrial, defense, and aerospace industries and create over 700 direct construction and manufacturing jobs.

Here's what they’re saying about this unprecedented effort and announcement:

Biden-Harris Administration Leaders:

Secretary of Commerce Gina Raimondo: “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. With this proposed investment, President Biden is delivering on his promise to rebuild America’s semiconductor supply chain, creating a more secure defense industrial base, lower prices for Americans, and over 700 jobs across Colorado and Oregon.” [Statement]

White House National Economic Advisor Lael Brainard: “This manufacturing investment in Oregon and Colorado will advance the President’s goal of making semiconductors in America again and reducing reliance on global supply chains that led to price spikes and long wait lines during the pandemic. This funding, which is only a fraction of the additional private investment that Microchip is making in these projects, will boost Microchip’s production nearly three-fold and create over 700 jobs. By making this investment, the Biden-Harris administration is addressing a vital link in our technology supply chain that impacts millions of American consumers and businesses.” [Statement]

Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio: “This proposed investment and others like it will help ensure that U.S. companies have a stable supply of the critical chip components they need to keep their factories running. This is an example of how government and industry can work together to strengthen our economy, improve our national security, and increase the supply of high-quality jobs for American workers.” [Statement]

Members of Congress:

U.S. Senator John Hickenlooper: "From the F35 and our war-making capabilities, to our GPS systems, really anything we use today comes back to chips. Making sure we can onshore them not only provides security but moves us forward in what is continuing to be a global competition to see where investments are going to be made, where jobs are going to be created, and where the ultimate security that technology is going to bring will be. There's no place better than Colorado Springs."

U.S. Senator Michael Bennet: “We can't allow strategic competitors like China to win the race for tomorrow's technologies. This $90M investment will strengthen CO's advanced manufacturing ecosystem and safeguard our national security by building these critical tools at home.” [Tweet]

U.S. Senator Ron Wyden: “Today’s announcement is further proof that Oregon is the beating heart of our nation’s semiconductor industry. This funding will keep Oregon at the forefront of high-tech and create good-paying jobs for Oregonians.” [Tweet]

U.S. Congressman Doug Lamborn: “Pleased to join community leaders in marking the next step for Microchip Technologies to triple their production here in Colorado Springs. Microchip’s local investment is yet another reason why CO-05 leads the world in developing advanced defense & space capabilities.” [Tweet]

U.S. Congresswoman Andrea Salinas: “BIG NEWS: Federal funding was announced for a semiconductor factory right here in Oregon - this critical investment proves once again that Oregon is one of the nation's leaders in 21st-century technology.” [Tweet]

U.S. Congresswoman Haley Stevens: “Good news: @CommerceGov and @MicrochipTech $162 million investment in domestic chip production under the CHIPS and Science Act means 3x production output, 700 good-paying jobs, and a more secure supply chain for this critical technology.” [Tweet]

State and Local Officials:

Colorado Governor Jared Polis: “Colorado is a leader in the semiconductor industry and we are proud to have companies like Microchip expanding in our state and creating more good-paying jobs for Coloradans. I applaud the federal government's commitment to investing in this cutting-edge industry and appreciate this partnership as Colorado’s semiconductor industry continues to grow.” [Statement]

Colorado Springs Mayor Yemi Mobolade: “Congratulations to Microchip on securing this once-in-a-generation investment that will modernize and expand its Colorado Springs-based facility and ensure more semiconductors are made here in America. Make no mistake, the promise of this deal is an investment in our local residents, and the return for our entire community is significant. It will propel groundbreaking innovation, produce good-paying jobs, and spur American-made manufacturing. As the proud home to five military installations and permanent home of U.S. Space Command, Colorado Springs plays a critical role in our national security overseas and in space. And it is companies like Microchip that ensure our military is ready at any moment to defend and protect our nation and its interests. Thank you to the Chips for America team, the Biden Administration and all our federal, state and local partners for their diligence in working together to bring this once-in-a-generation investment to Colorado Springs. As we kickoff 2024 with this news, I’m excited about the opportunities that lie before us, and we welcome this incredible opportunity for our community and our nation.”

Gresham Mayor Travis Stovall: “Microchip has been a model corporate partner in the Gresham community since they purchased the plant over 20 years ago. This investment furthers their deep commitment to living wage jobs, developing a diverse workforce, and ensuring everyone has an achievable path to economic prosperity.”

Colorado Office of Economic Development and International Trade Executive Director Eve Lieberman: "Colorado is at the forefront of developing tomorrow’s technologies. This is a once-in-a-generation opportunity to support the development of the semiconductor and advanced manufacturing industries within Colorado, creating new good-paying jobs and contributing to a strong, diversified economy. We’re thrilled to see the Department of Commerce recognize Colorado and Microchip’s important role in restoring America’s leadership in semiconductor manufacturing.” [Statement]

Colorado Springs Chamber and EDC President and CEO Johnna Reeder Kleymeyer: “Colorado Springs boasts a large industry concentration of semiconductor and hardware manufacturing, world-class industry reliability, and low utility costs making it the ideal destination for Advanced Manufacturing. Microchip’s third business expansion in Colorado Springs is welcome news and demonstrative of the positive impact of the CHIPS and Science Act, which has enabled the reshoring of thousands of well-paying manufacturing jobs to the Pikes Peak Region and incentivized a thriving business ecosystem for our region.” [Statement]

Arizona Commerce Authority President and CEO Sandra Watson: “Congratulations to Arizona-based @MicrochipTech and thank you @SecRaimondo and @CommerceGov for your support. We've been proud to work with Microchip on expansions of their operations recently and are very excited for their future!” [Tweet]

Organizations:

Semiconductor Industry Association President and CEO John Neuffer: “Today’s announcement will help propel semiconductor manufacturing projects in Colorado and Oregon and reinforce America’s chip supply chains for critical automotive, medical, aerospace, and defense technologies, among other applications. We congratulate Microchip on advancing these important projects and commend the progress made by Secretary Raimondo and the CHIPS Program Office team in beginning to distribute CHIPS incentives. We look forward to seeing more projects receive vital CHIPS funding to help reinvigorate America’s economy, national security, and critical supply chains.”