Biden's Semiconductor Push: Microchip Lands $162M Incentives To Reinforce US Supply Chain Providing Over 700 Jobs
Portfolio Pulse from Nabaparna Bhattacharya
Microchip Technology Incorporated (NASDAQ:MCHP) is set to receive $162 million in incentives from the U.S. Commerce Department to support the onshoring of its semiconductor supply chain. This investment aims to rebuild America's semiconductor supply chain, enhance security for the defense industrial base, reduce prices, and create over 700 jobs in Colorado and Oregon. The funding will be used to modernize and expand fabrication facilities in these states, nearly tripling the output of semiconductors and reducing reliance on foreign foundries.
January 04, 2024 | 4:09 pm
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Microchip Technology will receive $162 million in incentives to expand U.S. semiconductor production, which is expected to nearly triple output at its Colorado and Oregon facilities, create jobs, and strengthen supply chain resilience.
The significant government investment and the strategic importance of semiconductor supply chain resilience are likely to be viewed positively by investors. The expansion and job creation could lead to increased production capacity and potentially higher revenues for Microchip Technology in the long term. However, the short-term impact on the stock price may be muted as the shares are trading lower by 1.22% at the last check, possibly due to broader market conditions or investor concerns about the costs associated with the expansion.
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