Commerce Department Announces CHIPS Funding for Microchip Technology

Executive briefing: On January 4, 2024 the U.S. Department of Commerce announced a preliminary CHIPS and Science Act agreement to award Microchip Technology up to $162 million. The funding will expand production at the company’s Colorado Springs, Colorado and Gresham, Oregon fabs, increasing domestic supply of microcontrollers, analog, and mixed-signal ICs used across critical infrastructure.

Key supply signals

Capacity expansion. Microchip will increase cleanroom space, add tools, and boost output of mature-node semiconductors vital for aerospace, defense, and industrial markets.
Workforce investments. The memorandum includes workforce development programs and community benefits plans supporting local training pipelines.
Supply resilience. The agreement complements Microchip’s trusted manufacturing status, strengthening North American supply for secure applications.

Control alignment

Supplier assurance. Update sourcing strategies for microcontrollers and analog components to leverage the expanded domestic capacity.
Compliance planning. Align export control and cybersecurity requirements with Microchip’s CHIPS-funded operations.
Community engagement. Coordinate with local partners on workforce and education initiatives tied to the funding.

Action checklist

Engage Microchip on production schedules and product lines benefiting from the CHIPS investment.
Incorporate the additional capacity into risk models for industrial control systems and aerospace programs.
Track Commerce’s due diligence milestones leading to a final award.

Sources

Zeph Tech integrates mature-node CHIPS investments into resilient supply planning for industrial and defense systems.