In the global map of the semiconductor industry, the United States is drawing a grand blueprint for innovation and modernization with its strong financial support. Yesterday, the United States Department of Commerce announced a major investment plan to allocate $50 million to tech giant Hewlett-Packard to support the expansion and technology upgrade of its existing factory in Oregon, a move that marks a solid step forward in the development of key semiconductor technologies in the United States.
This funding will not only bring new growth opportunities to HP's Corvallis, Oregon campus, but will also serve the high-end technologies that underpin life sciences instrumentation and technology hardware that play a critical role in AI applications and other cutting-edge projects. As United States Secretary of Commerce Gina · Raimondo said, the $50 million investment "underscores our commitment to investing in every part of the semiconductor supply chain and the centrality of semiconductor technology in drug discovery and life sciences device innovation."
HP's deep expertise in microfluidics and MEMS will be further enhanced by this funding. The funds will be used to manufacture silicon devices that are indispensable in life science laboratory equipment, which are extremely important for drug discovery, single-cell research, and cell line development.
Figure: HP chip technology project receives $50 million in United States support (Source: Bloomberg)
The $39 billion semiconductor manufacturing subsidy program approved by the United States Congress in August 2022, along with $75 billion in government lending rights and about $24 billion in investment tax credits, provides strong financial support for businesses in this sector. The implementation of these policies has not only injected vitality into the revival of the semiconductor industry in United States, but also provided a solid guarantee for the stability and innovation of the global semiconductor supply chain.
The United States Department of Commerce has signed term sheets with 17 companies for more than $32 billion in grants and up to $29 billion in loans. In addition, it plans to provide $6.4 billion to Korea's Samsung Electronics to expand its chip production in Texas. Intel Corporation and Taiwan Semiconductor Manufacturing Co., Ltd. also received $8.5 billion and $6.6 billion, respectively, to expand their manufacturing facilities in the United States. Memory chip maker Micron Technology Inc. also received US$6.1 billion in funding to advance its domestic chip factory project.
While all awards have not yet been finalized and amounts are subject to change after due diligence, these investment plans undoubtedly demonstrate United States' ambition and commitment to semiconductors. Through these investments, United States has not only strengthened its leadership position in the global semiconductor industry, but also laid a solid foundation for promoting scientific and technological innovation and economic development.
