The U.S. Department of Commerce announced Tuesday that it will provide HP (HPQ) with $50 million to support the expansion and modernization of an existing company facility in Oregon that will help advance key semiconductor technologies.
The proposed funds will support technologies used in life sciences instrumentation and technology hardware for artificial intelligence applications and other projects, the ministry said.
In August 2022, Congress approved a $39 billion subsidy program for U.S. semiconductor and related components manufacturing, as well as $75 billion in government borrowing authorizations and a 25% investment tax credit worth an estimated $24 billion.
The projects build on HP’s expertise in microfluidics and microelectromechanical systems, and the funding will support the manufacturing of silicon devices that are critical in life sciences laboratory devices used in drug discovery, single-cell research, and cell line development.
Commerce Secretary Gina Raimondo said the proposed $50 million funding for HP’s campus in Corvallis, Oregon, “demonstrates how we are investing in every part of the semiconductor supply chain and how important semiconductor technology is for innovations in drug discovery and critical life sciences equipment.”
The ministry said the technology will provide a boost to partner institutions such as Harvard Medical School, the U.S. Centers for Disease Control and Prevention and Merck (MRK).
HP CEO Enrique Lores said the financing “provides HP with the opportunity to modernize and expand our facilities to further invest in our microfluidics technology.”
The ministry has signed agreements with 17 companies that include grants worth more than $32 billion and loans worth up to $29 billion.
In addition, other important contracts were awarded, including $6.4 billion to South Korean company Samsung to expand chip production in Texas.
Intel received $8.5 billion in grants in March, while Taiwanese company TSMC (TSMC34.SA) received $6.6 billion to expand its production in the U.S. and memory chip maker Micron Technology received $6.1 billion to finance domestic chip factory projects.
The allocations have yet to be finalized, and the amount of the allocations is subject to change following careful review by the Department of Commerce.
(Reporting by David Shepardson; Editing by Miral Fahmy)
