MICROCHIP Technology is pausing its application for US semiconductor subsidies, sources familiar with the matter said, making it the first known company to step back from a programme designed to revitalise American chipmaking.
The struggling chipmaker was in line for US$162 million in grants from the Chips and Science Act to support plants in Oregon and Colorado. Since then, it’s furloughed workers twice at facilities in Oregon and announced plans to shut down a factory in Arizona, affecting around 500 employees.
“We are in communication with Microchip on their Chips process and continue to have productive conversations with them about their long-term plans,” said a spokesperson for the Commerce Department, which is in charge of Chips Act implementation.
Microchip’s decision is a blow to Biden officials racing to finalise awards from the landmark bipartisan law. Officials have announced preliminary deals with more than 20 companies, and inked final agreements with six – including major players such as Intel and Taiwan Semiconductor Manufacturing Company. BLOOMBERG
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