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The Biden-Harris Administration announced that the U.S. Department of Commerce and Microchip Technology Inc. have reached a non-binding preliminary memorandum of terms (PMT) to provide approximately $162 million in federal incentives under the CHIPS and Science Act to support the onshoring of the company’s semiconductor supply chain. This investment would enable Microchip to significantly increase its U.S. production of microcontroller units (MCUs) and other specialty semiconductors built on mature-nodes critical to America’s automotive, commercial, industrial, defense, and aerospace industries and create over 700 direct construction and manufacturing jobs.
President Biden signed the CHIPS and Science Act – part of his Investing in America agenda – into law in August 2022, with the goal of strengthening U.S. supply chains, creating good-paying jobs, protecting national security, and advancing U.S. competitiveness. Today’s announcement is the second PMT announcement the Department of Commerce has made under the CHIPS and Science Act.
Microchip’s microcontroller units and mature-node semiconductors are critical components in the production and manufacturing of electric vehicles and other automotives, washing machines, cell phones, airplanes, and the defense-industrial base. Shortages of microcontrollers during the pandemic affected over 1% of global GDP. By investing in Microchip, the Biden-Harris Administration would help advance U.S. economic and national security by further securing a reliable, domestic supply of these chips.
The approximately $162 million in proposed CHIPS funding would be split across two projects: approximately $90 million to modernize and expand a fabrication facility in Colorado Springs, Colorado, and approximately $72 million to expand a fabrication facility in Gresham, Oregon. The projects are estimated to nearly triple the output of semiconductors the company produces at these sites, decreasing its reliance on foreign foundries and strengthening supply chain resilience, and creating good-paying jobs in construction and manufacturing.
“One of the objectives of the CHIPS and Science Act is to address the semiconductor supply chain shortages we saw during the pandemic that put our national security at risk and led to furloughed auto workers and higher prices for consumers. Today’s announcement with Microchip is a meaningful step in our efforts to bolster the supply chain for legacy semiconductors that are in everything from cars, to washing machines, to missiles,” said Secretary of Commerce Gina Raimondo. “With this proposed investment, President Biden is delivering on his promise to rebuild America’s semiconductor supply chain, creating a more secure defense industrial base, lower prices for Americans, and over 700 jobs across Colorado and Oregon.”
“This manufacturing investment in Oregon and Colorado will advance the President’s goal of making semiconductors in America again and reducing reliance on global supply chains that led to price spikes and long wait lines for everything from autos to washing machines during the pandemic,” said White House National Economic Advisor Lael Brainard.
“This proposed investment and others like it will help ensure that U.S. companies have a stable supply of the critical chip components they need to keep their factories running,” said Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio. “This is an example of how government and industry can work together to strengthen our economy, improve our national security, and increase the supply of high-quality jobs for American workers.”
“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 Ganesh Moorthy, President and CEO of Microchip. “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.”
As explained in the Department’s first Notice of Funding Opportunity, the Department may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a CHIPS incentives award, including the amount and form of the award.
After the PMT is signed, the Department begins a comprehensive due diligence process on the proposed project and other information contained in the application. After satisfactory completion of the due diligence phase, the Department may enter into final award documents with the applicant. Terms of the final award documents are subject to negotiations with the applicant and may differ from the terms of the PMT.
Original – U.S. Department of Commerce
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With UK and European companies seeking advanced technology to solve challenges in communications, IoT and automotive applications, many are looking for local support from major solution vendors. Microchip Technology Inc. announced the inauguration of a major new facility at Cambridge Research Park, Cambridge, UK.
At the heart of Microchip’s plans to develop more of its smart, connected and secure solutions in the UK area, the new center will add significant R&D space, which will allow Microchip’s business units to further develop their already broad offering. The new site will help Microchip improve its focus on the needs of several of its highest priority markets, such as IoT, automotive, industrial and consumer.
To gain immediate benefit from the facility, many of Microchip’s highly skilled development engineers and other staff will transfer from the company’s Ely site, with plans in hand to boost the number of employees at the Cambridge site over time.
“The Cambridge site is ideally situated in one the world’s top technology areas and will enable us to attract top talent to build state of the art products and serve our customer base,” said Sumit Mitra, senior corporate vice president of Microchip’s 32-bit microcontroller, microprocessor, wireless, aerospace and development tools business units.
“We have already onboarded a large number of talented and experienced engineers for the new center and expect that the new opportunities we will offer—to develop exciting solutions for the most significant and dynamic technology markets—will further attract the highly talented staff we need.”
“The facility is intended to become a premier Microchip engineering center, employing 200 highly skilled silicon engineering staff and advanced laboratories,” said Neel Das, senior director of Microchip’s 32-bit microcontroller business unit. “Establishing the new facility in Cambridge means we can meet this target by tapping into the wealth of engineering talent that exists in the area. The Cambridge Research Park is a hub of innovation and an excellent venue to develop the high-tech solutions on which we have built our reputation.”
The three-story building will offer approximately 10,000 square feet per floor, providing space to support multiple product lines including 16- and 32-bit microcontrollers, 32-bit microprocessors and wireless connectivity products plus technology development, physical design and human resource support.
Original – Microchip Technology
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The automotive industry is evolving at a rapid pace, with E-Mobility and Advanced Driver Assistance Systems (ADAS) driving the market’s need for innovative solutions. Microchip Technology announced the expansion of its Detroit Automotive Technology Center in Novi, Michigan. The 24,000-square-foot facility is the destination for automotive clients to explore new technologies and to meet with technical experts to get support for their end applications and designs.
Microchip has been part of the Detroit community since 1999, when it first opened its doors as an application and sales office. With the recent completion of phase three of its expansion project, Microchip has more than doubled its lab space, including the addition of new labs that focus on high-voltage and E-Mobility applications. This larger facility will also bring more technology-related jobs to the region.
“Microchip’s automotive business is a cornerstone of our company’s legacy. We remain focused on developing total system solutions, and this expansion provides our customers with immediate access to state-of-the-art resources,” said Rich Simoncic, executive vice president of Microchip. “In addition to the Detroit location, we have Automotive Technology Centers in Munich, Shanghai, Tokyo and Austin, Texas, to support our global customer base.”
“Microchip’s Automotive Technology Center demonstrates our commitment to the automotive industry by providing a destination for them to develop, test and refine applications in the design phase,” said Matthias Kaestner, corporate vice president of Microchip’s automotive business. “Our vision for the center is to provide our automotive customers with the confidence to choose the right solutions for their designs by helping them to cut design effort and time to market by providing world class technical support locally.”
Located in the heart of the automotive industry, and with top tier OEMs, suppliers and startups operating in the region, Novi is a key location for Microchip’s Detroit Automotive Technology Center and easily accessible to help OEMs with their design challenges.
The key capabilities of the Detroit Automotive Technology Center include:
- Dedicated high-voltage lab for demonstrations of reference designs featuring Microchip’s silicon carbide mSiC™ solutions, dsPIC® Digital Signal Controllers (DSCs) and our wide breadth of analog and mixed-signal solutions
- Support for central compute and zonal networks in ADAS platforms using Microchip’s PCIe® Gen 4 and Gen 5 switching hardware, single-pair Ethernet devices and development tools
- Human Machine Interface (HMI) lab to support the development of full-width cockpit displays; touchscreens; Knob-on-Display™ (KoD™) solutions; and buttons, sliders, and wheels with EMC testing
- USB and networking development resources for pre-certification of multimedia infotainment systems and media hubs for advanced USB Type-C® 3.2 protocol applications
- Die- and product-level characterization of automotive MEMS resonators and oscillators, including vacuum and wafer-scale probe and test, long-term aging, frequency stability, phase noise and jitter test capability
- Development of automotive security solutions using Microchip’s CryptoAutomotive™ TrustAnchor ICs, and onsite security training to learn how to implement secure elements in applications such as secure boot, message and hardware authentication and more
“The new high-voltage lab will help our automotive customers develop systems using our reference design platforms and analog, digital control and power solutions,” said Clayton Pillion, vice president of Microchip’s silicon carbide business unit. “As more OEMs transition to our E-Mobility offerings, we are ready to support them from the design phase to implementation.”
As a leading supplier of embedded solutions to global automotive OEMs, Microchip offers many automotive products that are qualified in accordance with AEC-Q100 requirements. Its automotive-qualified product portfolio includes microcontrollers, DSCs, USB and networking solutions, analog and interface products, SiC MOSFETs, serial EEPROMs and more.
Microchip also offers a broad portfolio of ISO 26262 functional safety ready and functional safety compliant devices that offer the latest hardware safety features and are supported by a comprehensive safety ecosystem to simplify the design and certification of safety-critical automotive applications.
Original – Microchip Technology
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Power semiconductors companies continue to invest heavily in new factories, production capacity expansions, and R&D centers. Thus, recently the total value of the active investment projects launched since 2021 has surpassed 70 billion USD.
Driven by the pandemic and geopolitics, major power semiconductors companies started to invest more in new factories and joint ventures to have more confidence in their own supply chain in the future.
As of today, it is obvious to see the major split of power semiconductors into three geographical regions – the USA, Europe, and Asia. Asia may as well be divided into several regions with China being the leading investor of all.
Despite the ongoing tensions and export restrictions between the US, Europe, and China related to advanced semiconductors, when it comes to power semiconductors European companies continue to invest in the Chinese market expanding their product capacity or establishing new joint ventures like STMicroelectronics and Sanan Optoelectronics did recently.
Even with some delay, Japanese companies like ROHM, Mitsubishi Electric, Fuji Electric, Renesas Electronics, Toshiba, and others, pushed by their US and European competitors, announced their own projects aimed to secure the capacity on the wafer and device level to correspond to the growing demand for Si and SiC based power semiconductors coming from the electric vehicle and charging, photovoltaics, battery energy storage systems, and the other emerging applications.
If we take a closer look at all projects announced, SiC is the leading technology with over 60% of total investment. Over 25 market leaders announced their plans to invest in silicon carbide.
Thus, ROHM is investing in new production to multiply its SiC capacity in the coming years. Mitsubishi Electric teams up with Coherent to scale manufacturing of SiC power devices on a 200 mm SiC technology platform as one of the steps of their 260 billion yen investment project planned till March 2026.
Infineon Technologies continues to bet on both local European and Asian markets investing in their new fab in Dresden and expanding backend operations in Indonesia. STMicroelectronics continues to invest in WBG semiconductors with the ongoing construction of a new wafer fab in Sicily announced in 2022.
With a global total number of new investment projects of over 80, the US companies Wolfspeed, onsemi, and Microchip Technology, similar to their European counterparts, invest locally, in Europe and Asian markets. Totally the US semiconductor companies announced new projects valued at almost 9 billion USD.
With the US and EU Chips Acts, and similar initiatives in China, Japan, South Korea, and some other countries, it is clear that the investment into power semiconductors industry will continue to reach 100 billion USD soon.
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Microchip Technology Incorporated announced a multi-year initiative to invest approximately $300 million in expanding its operations in India, one of the world’s fastest-growing semiconductor industry hubs.
“Microchip is making a significant strategic commitment to growing our operations in India, whose meteoric growth has established it as one of the top sources of business and technical resources in our sector,” said Ganesh Moorthy, President and CEO of Microchip. “Our investments here will enable us to both benefit from and contribute to the country’s increasingly important role in the global semiconductor industry.”
Microchip’s planned investments are focused on:
- Additional improvements to Microchip’s Bangalore and Chennai facilities and the new research and development center in Hyderabad that the company inaugurated in a ceremony today
- Expanding and enhancing its engineering labs
- Serving the technical and business support requirements of a large and growing set of customers in India
- Accelerating hiring as the company taps into India’s growing talent pool
- Sponsoring technical consortia and supporting academic institutions and programs
- Launching a variety of Corporate Social Responsibility (CSR) programs tailored to regional needs
Approximately 2,500 Microchip employees in India are integral to the company’s semiconductor design and development, sales and support, IT infrastructure and application engineering operations. They strengthen corporate initiatives, support 2,000 customers in the region and make valuable contributions across more than 25 business units that develop solutions for industrial, automotive, data center, aerospace and defense, communications and consumer industries.
“Microchip’s investments in India over nearly two and a half decades have augmented its headcount growth, resulting in building a center of excellence for engineering deliverables and solutions for Microchip’s global success,” said Krishna Moorthy, President and CEO of the India Electronics and Semiconductor Association (IESA). “We look forward to celebrating Microchip’s continued progress in India as it embarks on this impressive growth campaign.”
IESA and Counterpoint Research recently reported that India’s semiconductor market is expected to reach $64 billion USD by 2026, which is nearly triple its 2019 size of $22.7 billion USD. The Semiconductor Industry Association wrote in its February 2023 India Semiconductor Sector white paper that the country now accounts for 20 percent of the total global design workforce. Together, IESA and SIA announced in January 2023 their plans to jointly build on what India has already accomplished as a major hub for semiconductor research, chip design and equipment engineering, with the goal of unlocking even greater future potential.
Original – Microchip Technology
