After BAe Systems got the first award under the US Chips and Science Act, Microchip has bagged up the second – a $126 million subsidy for its fabs in Oregon and Colorado.

US Department of Commerce Secretary Gina Raimondo called the Microchip grant: “A meaningful step in our efforts to bolster the supply chain for legacy semiconductors that are in everything.”

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Last year Microchip announced an $800 million plan to triple production at its Oregon fab.

“Microchip Technology manufactures semiconductors that are the backbone of electronic applications across vital industries like aerospace and defense, automotive, and medical. Microchip’s fabs in Colorado and Oregon, among others, perform specialized manufacturing as well as additional reliability and safety qualification for products designed for such mission-critical markets,” said Microchip CEO Ganesh Moorthy,  “the funding Microchip is proposed to receive from the CHIPS and Science Act would be a direct investment to strengthen our national and economic security. As a US-based company, Microchip’s operations will continue to bolster the national semiconductor supply chain, as well as develop and expand our workforce.”

Lael Brainard, White House National Economic Council director, said the grant will reduce the US “reliance on global supply chains that led to price spikes and long wait lines for everything from autos to washing machines during the pandemic.”