HP secures up to $50 million in CHIPS Act funding to expand an Oregon facility
HP is the latest recipient of CHIPS and Science Act funding. The Biden-Harris Administration said on Tuesday that the Department of Commerce has agreed to preliminary terms with the company to funnel up to $50 million into modernizing the company's Oregon-based plant. The expansion of HP's lab-to-fab" facility, which combines R&D with chip manufacturing, is expected to create over 250 jobs.
Once finalized, HP's funding would support the development of chips for life sciences lab equipment. This includes devices used for drug discovery, single-cell research and cell line development. HP says the expansion will also advance tech built for microfluidics, the study of the behavior and control of fluid on a microscopic scale. Microfluidics has the potential to drive revolutionary changes across industries, delivering speed, efficiency, and precision, to help pave the way for the next generation of innovation in life sciences and technology," HP's President and CEO Enrique Lores wrote in a Department of Commerce press release.
The proposed $50 million would support the expansion and modernization of HP's existing plant in Corvallis, OR, around 80 miles south of Portland. In addition to manufacturing silicon, the plant is one of the company's three global R&D centers. The 80,000-square-foot plant has incubated 39 startups, including 20 spun off from Oregon State University faculty and students. The company has academic partnerships with Portland Community College on training and recruitment programs.
The proposed $50 million funding is through a preliminary memorandum of terms (PMT). The non-binding agreement is conditional on the achievement of certain milestones." Having completed a merit review of HP's application, the Department of Commerce will begin due diligence on HP's proposed projects before the agency negotiates or refines its final funding terms.
The $280 billion CHIPS and Science Act, signed by President Biden in 2022, directs funding to incentivize semiconductor companies to manufacture in America, boosting America's ability to compete with China while generating job growth. It includes $39 billion in subsidies for domestic chip manufacturing and $13 billion for workforce training.
Previous recipients include $8.5 billion for Intel, $6.6 billion for TSMC and $6.4 billion for Samsung. In addition, GlobalFoundries received $1.5 billion and Texas Instruments got $1.6 billion to produce legacy chips (less advanced silicon for things like phones, appliances and defense equipment).
This article originally appeared on Engadget at https://www.engadget.com/big-tech/hp-secures-up-to-50-million-in-chips-act-funding-to-expand-an-oregon-facility-171233289.html?src=rss