The U.S. government will provide subsidies to enhance key semiconductor technologies.
Yesterday, the U.S. Department of Commerce announced plans to allocate $50 million to Hewlett-Packard (HP) to expand and modernize its facilities. According to the Department of Commerce, the proposed funding aims to support technologies used in life science instruments and technical hardware for AI applications and other projects.
This project is based on HP’s expertise in microfluidics and microelectromechanical systems (MEMS). It will support the production of silicon devices essential for life sciences laboratory equipment used in drug discovery, single-cell research, and cell line development.
Commerce Secretary Gina Raimondo, speaking about the $50 million proposal for Corvallis, Oregon, stated, “It shows how we are investing in every part of the semiconductor supply chain and how crucial semiconductor technology is for new drug discovery and innovative life science equipment.”
HP CEO Enrique Lores added, “This funding provides an opportunity to modernize and expand our facilities, allowing us to further invest in our microfluidics technology.”
The Department of Commerce released a report announcing that 17 companies would receive more than $32 billion in subsidies and up to $29 billion in loans.
The report also included plans to support Samsung with $6.4 billion to expand chip production in Texas.
In August 2022, Congress approved a $39 billion subsidy program for U.S. semiconductor manufacturing, with $75 billion in government loan authority and a 25% investment tax credit worth about $24 billion.
As a result, in March, Intel secured $8.5 billion in subsidies, Taiwan’s TSMC received $6.6 billion to expand U.S. production, and Micron Technology obtained $6.1 billion to fund its domestic chip plant projects.
However, all these subsidies have yet to be finalized and may change after the Department of Commerce reviews them.
HP shares rose slightly, trading at $35.60.
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