The U.S. Commerce Department announced plans on Tuesday, Aug. 27 to award $50 million to HP to support the boost of key semiconductor technologies.
The project will involve the expansion and modernization of an existing company facility in Corvallis, Oregon.
The proposed funding will support technologies that serve life sciences instrumentation and technology hardware used in artificial intelligence applications and other projects, the department said.
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In August 2022, Congress approved a $39 billion subsidy program for U.S. semiconductor manufacturing and related components along with $75 billion in government lending authority and a 25 percent investment tax credit worth an estimated $24 billion.
Commerce Secretary Gina Raimondo said the proposed $50 million funding for the Corvallis campus “shows how we are investing in every part of the semiconductor supply chain and how important semiconductor technology is to innovation in drug discovery and critical life science equipment.”
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The department said the technology will boost partner institutions, including Harvard Medical School, the U.S. Centers for Disease Control and Prevention, and Merck.
HP CEO Enrique Lores said the funding “provides HP with an opportunity to modernize and expand our facility to further invest in our microfluidics technology.”
The Commerce Department has announced term sheets with 17 companies offering more than $32 billion in grants and up to $29 billion in loans.
It also announced other major planned awards, including $6.4 billion to South Korea’s Samsung to expand chip production in Texas.
Intel won $8.5 billion in grants in March, while Taiwan’s TSMC clinched $6.6 billion to build out its American production.
Memory chip maker Micron Technology won $6.1 billion to help fund domestic chip factory projects.
All the awards have yet to be finalized and amounts could change.
Reuters contributed to this report.
