Through the investment, the US-based embedded control solutions provider expects to expand the silicon carbide and silicon production capacity at its fabrication campus in Colorado in response to the increasing demand for semiconductors across a wide range of industries
Microchip to invest $880m to expand its Colorado Springs fabrication campus. (Credit: Microchip Technology Inc)
Microchip Technology said that it will make an investment of $880m to expand its Colorado Springs fabrication campus in Colorado, US over the next several years.
Through the investment, the US-based embedded control solutions provider expects to expand its silicon carbide and silicon production capacity.
The 50-acre campus will be upgraded to ramp up the production of silicon carbide for its use in grid infrastructure, automotive/e-mobility, green energy, aerospace, and defence applications.
Microchip Technology, working in collaboration with the Colorado Springs Chamber & Economic Development, the City of Colorado Springs, and El Paso County, has been granted state and local incentives of about $47m for the expansion.
Colorado Springs Mayor John Suthers said “We are very pleased Microchip has selected its Colorado Springs facility as the site for such a significant investment and expansion.
“We estimate this will grow our local economy by approximately $1.4 billion over the next 10 years and create roughly 400 new high-paying jobs for those living in the Pikes Peak Region.
“Ramping up the production of semiconductors is critical to satisfying growing demand across many industries, and Colorado Springs is proud to be one of the key locations where this effort is taking place.”
The semiconductor fabrication campus of the company currently manufactures products from 6-inch wafers and employs over 850 people. The manufacturing system that Microchip Technology is deploying will operate on 8-inch wafers, which is expected to considerably boost the quantity of chips made at the campus.
According to the company, the fab expansion is estimated to create an additional 400 jobs. These will range from production specialists to technical positions in equipment procurement and management, process control, and test engineering.
Microchip Technology president and CEO Ganesh Moorthy said: “Microchip Colorado Springs has a long history of partnering with the city and state and we applaud their continued support of our efforts to advance the semiconductor industry in the US.
“The CHIPS and Science Act is already making a positive impact on our business through the Investment Tax Credit and we are seeking capacity expansion grants for several of our semiconductor factories, including our Colorado Springs factory.”