The US Commerce Department announced on Tuesday a substantial $50 million grant to HP to support the expansion and modernization of its facility in Corvallis, Oregon. This funding aims to advance semiconductor technologies crucial for various applications, including life sciences instrumentation and technology hardware for artificial intelligence.
The investment will focus on enhancing HP’s capabilities in microfluidics and microelectromechanical systems, pivotal for manufacturing silicon devices used in life sciences lab equipment. These advancements are expected to significantly impact drug discovery, single-cell research, and cell line development.
Commerce Secretary Gina Raimondo highlighted the importance of this grant, stating that it underscores the government’s commitment to investing across the semiconductor supply chain. Raimondo emphasized the role of semiconductor technology in driving innovation in critical areas such as drug discovery and life sciences equipment.
The funding comes as part of a broader initiative approved by Congress in August 2022. The legislation included a $39 billion subsidy program for US semiconductor manufacturing, $75 billion in government lending authority, and a 25% investment tax credit estimated to be worth $24 billion. This comprehensive support aims to bolster domestic semiconductor production and related components.
HP’s Chief Executive Officer, Enrique Lores, expressed enthusiasm about the grant, noting that it presents an opportunity to modernize and expand the company’s facility while further investing in its microfluidics technology.
In addition to the grant for HP, the Commerce Department has announced significant funding commitments to other major players in the semiconductor industry. South Korea’s Samsung is set to receive $6.4 billion to expand chip production in Texas. Intel was awarded $8.5 billion in grants in March, while Taiwan’s TSMC secured $6.6 billion to enhance its American production facilities. Memory chip maker Micron Technology also received $6.1 billion to support domestic chip factory projects.
These funding initiatives are part of a larger strategy to strengthen the US semiconductor industry and ensure a robust domestic supply chain. The Commerce Department is still finalizing the details of these awards, with amounts subject to change pending further due diligence.
