In a statement made by the US Department of Commerce, it was reported that a preliminary agreement was reached with Microchip Technology to provide $ 162 million in federal incentives to support the company's semiconductor supply chain.

In the statement, it was noted that this investment will allow Microchip Technology to significantly increase its semiconductor production, which is critical to the US automotive, commercial, defense and aerospace industries, and provide more than 700 direct jobs.

Reminding that US President Joe Biden implemented the "CHIPS and Science" law in August 2022 to strengthen the country's supply chains, increase competitiveness, create well-paying jobs and protect national security, the statement said that the cooperation with Microchip Technology is the second preliminary agreement made within this scope.

The statement emphasized that the investment in Microchip will help improve the economic and national security of the United States by further securing the domestic and reliable supply of chips.

About $90 million of the incentive will be used to modernize and expand a manufacturing facility in the state of Colorado, and $72 million will be spent on expanding a manufacturing facility in the state of Oregon, the statement said, "It is estimated that the two projects will almost triple the company's semiconductor production in these facilities, reduce dependence on foreign manufacturers, strengthen supply chain flexibility, and create well-paying jobs in construction and manufacturing."

US Secretary of Commerce Gina Raimondo emphasized that the agreement is a meaningful step in efforts to strengthen the supply chain for semiconductors found in everything from cars to washing machines and missiles.