Colorado and Oregon have been awarded $162 million by US President Joe Biden to expand their computer chip factories amid growing demands for the semiconductors.
The incentives will be divided to the microchip facility in Colorado Springs with $90 million and a $72 million expansion plan for the factory in Gresham Oregon.
The Biden administration expects the financial support will help the states' domestic production of computer chips to triple the numbers for military, auto, household, and medical applications.
This is already the second funding rolled out by the government in accordance with the 2022 CHIPS and Science Act, promising a $52 billion budget to revitalize the semiconductor industry in the US.
US Steps Up into the Computer Chip Manufacture Business
The US has been ramping up its revitalization efforts on the stagnant microchip industry in the past years to reduce supply issues brought by inflation during the pandemic.
As of writing, 90% of microchips and semiconductors used by US tech companies were manufactured in Taiwan.
With the current political tension between Taiwan and China, the US is looking for alternative sources for the advanced chips required for its automated defenses.
The government projected $77.44 billion for 2024 and expected it to further grow in 2027 once all industry improvements have been completed.
The European Union, which also imports most of its semiconductors from Taiwan, also passed a similar law last year to increase Europe's market share for semiconductors to 20% by 2030.
Also Read: US to Impose Trade Restrictions on Chinese Chipmaker, 35 Other Companies
US Defense Now Requires More Semiconductors
The recent additional budget for the national defense has also brought the US issue of needing holistic access to semiconductors for its aerospace and defense capabilities.
The need is primarily evident in its air defenses where the majority of its modern fighter jets require advanced chips for navigation and flight support.
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