The Biden-Harris Administration has unveiled a preliminary memorandum of terms (PMT) between the U.S. Department of Commerce and Microchip Technology Inc., signaling a commitment to bolstering the domestic semiconductor supply chain. The proposed investment of approximately $162 million aims to enhance the production of critical microcontroller units (MCUs) and specialty semiconductors, with the potential to create over 700 jobs.
The CHIPS and Science Act, signed into law by President Biden in August 2022, serves as the foundation for this initiative. Its primary goals are to fortify U.S. supply chains, generate high-paying jobs, safeguard national security, and enhance competitiveness. Microchip’s MCUs and mature-node semiconductors play a vital role in various sectors, including automotive, defense, and aerospace.
Secretary of Commerce Gina Raimondo emphasized the administration’s dedication to addressing semiconductor shortages, which have become increasingly apparent during the pandemic and have posed risks to national security and economic stability. The investment in Microchip aligns with President Biden’s vision of rebuilding America’s semiconductor supply chain, ensuring a reliable domestic chip supply, and promoting job creation across states.
The significance of these manufacturing investments in Oregon and Colorado was highlighted by White House National Economic Advisor Lael Brainard. These investments are a part of the broader strategy to reduce reliance on global supply chains, mitigate price spikes, and eliminate delays in the availability of essential products.
The collaboration between government and industry was underscored by Laurie E. Locascio, Under Secretary of Commerce for Standards and Technology and NIST Director. This collaboration aims to strengthen the economy, enhance national security, and create high-quality jobs. Microchip’s President and CEO, Ganesh Moorthy, expressed the company’s commitment to reinforcing national and economic security while emphasizing the positive impact on the semiconductor supply chain and workforce development.
This announcement reflects the proactive approach of the Biden-Harris Administration in addressing semiconductor challenges and aligns with broader initiatives to fortify domestic industries and create a more resilient and secure supply chain. By investing in domestic production capabilities, the administration aims to strengthen the semiconductor supply chain and reduce dependence on foreign foundries, ultimately enhancing national security and economic stability.
The source of the article is from the blog crasel.tk