Microchip plans $3 billion expansion in Oregon

According to reports, Microchip, the global leader in the MCU industry, is considering expanding production in Gresham, Oregon, with an investment that may reach $3 billion.

This potential move comes as chip manufacturers ramp up domestic production amid an unprecedented construction surge in the U.S., with major projects planned in Arizona, Idaho, Texas, Ohio, and New York.

The push is fueled by a combination of increased demand for computer chips during the pandemic and $280 billion in federal incentives under the CHIPS Act to support semiconductor research and manufacturing.

According to reports, Oregon officials are currently courting three unnamed semiconductor companies for potential investments worth a combined $8 billion. It remains unclear whether Microchip's proposed expansion is one of these initiatives.

State officials have indicated that the project could bring substantial new investments and create up to 650 jobs in the region. In a letter addressed to Governor Kate Brown, four state legislators urged her to allocate $17.5 million from three state funds by November 1 to strengthen Oregon’s position.

“The expansion will have a significant impact on Gresham and national chip production. We hope to see Oregon workers contribute to solving global supply chain challenges,” the letter stated.

Microchip previously announced plans to invest $5 billion over several years to build a new wafer fabrication facility, though the site location has yet to be confirmed. The proposed facility would utilize advanced 12-inch silicon wafers, marking a major technological milestone for the company.