Microchip announces $90 million investment in Colorado Springs facility, Courtesy: FOX21 News Reporter, Rhea Jha
(COLORADO SPRINGS) — Microchip Technology, a U.S.-based semiconductor company, unveiled plans today to utilize $90 million in recently secured federal grant funds for expanding its Colorado Springs facility, a move set to foster job creation in the region. Governor Jared Polis and other key figures joined Microchip officials for the momentous announcement on Thursday, Jan. 4.
Microchip is a leading provider in the semiconductor landscape with over 125,000 global customers. The $90 million investment stems from a larger $162 million federal grant awarded to the company by the Biden administration, aimed at bolstering the Microchip’s semiconductor production. This is part of a new program aimed at ensuring the United States’ competitiveness in the semiconductor industry while securing a steady supply for domestic companies that need it.
This grant also marks the largest federal investment in the semiconductor industry to date.
“We’re proud that the largest federal investment in the semiconductor industry to date is an investment in Colorado,” remarked Governor Jared Polis.
Confirming the expansion’s impact, Microchip’s CEO highlighted the creation of over 400 new jobs in the city. Mayor Yemi Mobolade and Johnna Reeder Kleymeyer, the CEO of the Colorado Springs Chamber & EDC emphasized how increased job opportunities translate to an augmented tax base and improved living standards for the local populace.
“We all want to fill potholes and have great schools in our region, but none of us want to pay more taxes. Well, the way to do that is to increase our tax base, and that’s by bringing good jobs and great businesses to our community,” explained Kleymeyer.
“This investment ensures Colorado Springs continues its long and proud legacy of not just being known as Olympic City USA but also a Silicon Mountain,” stated Mayor Yemi Mobolade.
Gov. Polis underscored the bipartisan efforts to make the state an appealing destination for chip investments, and how this move positions Colorado Springs at the forefront of the technological advancements.
“The chip tax is really an opportunity. It’s up to us to seize the opportunity. It’s up to companies like Microchip. It’s up to states like Colorado and it’s up to regions like the Pikes Peak Region,” Governor Polis emphasized.
This substantial investment not only impacts the local and national landscapes but also elevates the United States’ stature in the global semiconductor industry.
“This is one of the most exciting days since I’ve been in politics in the sense that it’s a turning point. We are in a global competition… And now we are actually finally competing,” noted Senator John Hickenlooper (D-CO).
With the Colorado Springs campus currently spanning 50 acres with 580,000 square feet of manufacturing space, this expansion will enable Microchip to triple its semiconductor output, described by the company’s CEO as the “lifeblood of economies around the world.”
“Semiconductors over the last 40 plus years have become an engine for innovation, enabling all sorts of devices that are unimaginable at the time. How to make our lives more convenient, more safe, more rich in what we do with access to information,” commented Ganesh Moorthy, President & CEO of Microchip Technology.
Moorthy said the investment project will materialize over the next six years.
