The Biden administration plans to provide $162 million in funding to Microchip Technology in a move to increase production of semiconductors in the US, according to an announcement Thursday.
The funding includes $90 million for improvements at a facility in Colorado Springs, Colorado, and $72 million to expand a plant in Gresham, Oregon, according to the Commerce Department.
The upgrades are expected to allow Chandler, Arizona-based Microchip Technology to triple its production in the US.
Specifically, that refers to the production of microcontrollers, which are used in military applications, as well as medical devices and household appliances.
The funds are also expected to create about 700 manufacturing and construction jobs over the next ten years.
The administration’s move stems from the bipartisan CHIPS and Science Act, which Biden signed in August. The law allocates more than $52 billion to improve the domestic development and manufacturing of computer chips.
In December, the administration announced it would provide $35 million to BAE Systems for the expansion of a New Hampshire semiconductor factory that produces chips for military jets.