In a significant step towards bolstering U.S. semiconductor technology, the U.S. Commerce Department announced plans to award $50 million to HP (HPQ). This funding aims to support the expansion and modernization of an existing facility in Corvallis, Oregon, focusing on key semiconductor advancements.
Boosting Innovation in Semiconductor Technology
This strategic investment will enhance HP’s expertise in microfluidics and microelectromechanical systems, which are critical in producing silicon devices for life sciences lab equipment. These devices play an essential role in drug discovery, single-cell research, and cell line development, driving forward vital innovations in the pharmaceutical and biotechnology industries.
The expansion will also benefit sectors beyond life sciences, supporting AI hardware and other cutting-edge technology projects. The Commerce Department emphasized that these advancements could positively impact key partners, including Harvard Medical School, the U.S. Centers for Disease Control and Prevention, and Merck.
Government Support for U.S. Semiconductor Industry
This funding is part of a broader effort by the U.S. government to revitalize domestic semiconductor manufacturing. In August 2022, Congress approved a $39 billion subsidy program for semiconductor production and associated components, alongside $75 billion in lending authority and a 25% investment tax credit estimated to be worth $24 billion.
Commerce Secretary Gina Raimondo remarked that the $50 million allocation to HP demonstrates the government’s commitment to strengthening the entire semiconductor supply chain. She highlighted the crucial role this technology plays in driving innovation in critical sectors like life sciences.
HP’s Commitment to Growth
HP CEO Enrique Lores expressed that this funding provides the company with an opportunity to modernize and expand its operations, further investing in microfluidics technology that is crucial for advancements in both technology and life sciences.
This award follows other major funding initiatives aimed at bolstering U.S. semiconductor production. Notably, Samsung was granted $6.4 billion to expand chip manufacturing in Texas, Intel (INTC) received $8.5 billion in March, and TSMC (TSMC) secured $6.6 billion for building its U.S. production facilities. Additionally, Micron Technology (MU) was awarded $6.1 billion to support its domestic chip projects.
Although these awards are still subject to finalization and may adjust following Commerce Department due diligence, they represent a significant push towards reinforcing the U.S. semiconductor industry.