US Commerce Department to Award HP Inc. $50 Million for Semiconductor Tech Expansion at Corvallis Facility
Fiona Nanna, ForeMedia News
6 minutes read. Updated 3:41PM GMT Tues, 27August, 2024
In a significant move to bolster semiconductor technology in the United States, the U.S. Commerce Department announced on Tuesday its plans to award HP Inc. $50 million. This substantial funding aims to support the expansion and modernization of HP’s existing facility in Corvallis, Oregon, focusing on the advancement of critical semiconductor technologies.
This federal investment is part of a broader initiative endorsed by Congress in August 2022, which approved a $39 billion subsidy program specifically for U.S. semiconductor manufacturing. This program is complemented by $75 billion in government lending authority and a 25% investment tax credit estimated to be worth around $24 billion. The funding seeks to address the growing demand for advanced semiconductor technologies pivotal in life sciences instrumentation and technology hardware used in artificial intelligence applications, among other projects.
Advancing Semiconductor Technology
The proposed $50 million will be directed towards enhancing HP’s capabilities in microfluidics and microelectromechanical systems. These technologies are essential for the production of silicon devices used in life sciences lab equipment crucial for drug discovery, single-cell research, and cell line development. The investment underscores the importance of semiconductor technology in fostering innovation across various scientific fields.
Commerce Secretary Gina Raimondo emphasized the significance of this funding, stating, “The proposed $50 million funding for the Corvallis, Oregon, HP campus demonstrates our commitment to investing in every facet of the semiconductor supply chain. It highlights the crucial role semiconductor technology plays in advancing drug discovery and life science equipment.”
Impact on Research and Development
The enhanced technology will benefit numerous partner institutions, including Harvard Medical School, the U.S. Centers for Disease Control and Prevention, and pharmaceutical giant Merck. HP’s CEO, Enrique Lores, expressed enthusiasm about the funding, noting, “This investment provides HP with a unique opportunity to modernize and expand our facility, further advancing our microfluidics technology.”
Broader Context of Semiconductor Investments
The Commerce Department has also announced term sheets with 17 other companies, offering more than $32 billion in grants and up to $29 billion in loans as part of this initiative. Notable planned awards include $6.4 billion allocated to South Korea’s Samsung to expand chip production in Texas, $8.5 billion in grants awarded to Intel, $6.6 billion to Taiwan’s TSMC for American production expansion, and $6.1 billion to Micron Technology to support domestic chip factory projects.
While these awards mark significant strides in strengthening the U.S. semiconductor industry, final amounts may vary pending further due diligence by the Commerce Department.
