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President Biden announced $162 million to expand Microchip Technology’s (MCHP) domestic chip factories based in Colorado and Oregon. Yahoo Finance discusses how semiconductor investments will play a major role in strengthening the cyber side of national defense.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by luke carberry morgan.
video transcript
[MUSIC PLAYING]
Sheena Smith: Okay. The opening bell on Wall Street is about 10 minutes from here. Take a look at some of the trending tickers on our site this morning. First, we have to look at microchip technology. Chip stocks are rising as President Biden doubles down on chip funding by announcing a $162 billion investment in microchip technology to expand factories in Colorado and Oregon.
This is the second round of funding from the Biden administration since the CHIP Act took effect in 2022. This is the first funding for microchip technology. It is important to point out that the first award was given to BAE Systems just last month. But Maddie, given what’s going on here, obviously the Biden administration is really focused on national security and microchips and bringing this chip manufacturing back to the United States, and this funding is It will be used for chips and MCUs. This is of great importance not only for the consumer industry but also for the defense industry.
Madison Mills: right. that’s right. The story here is AI-driven play, rather than the typical chip conversations we often talk about. What I find interesting is how the Biden administration thinks about who they choose to fund this. And we know that this name was already in February talking about building a fab for chip production. So they’re already working on this work, but this is really important because it can take a long time for this money to reach these companies. We have heard that complaint from previous funders who received this funding.
And it could take up to five years for these factories to start operating. But that being said, there are 700 jobs created and a lot of potential chip production as well, which could be critical to securing America’s future.
Sheena Smith: Yes, certainly. We’ve also heard from Secretary of Commerce Gina Raimondo that there are plans to make more of this type of funding in the future, and this is the first as we expect to see about 12 chip fundings here in 2024. He said there is.
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