The US Commerce Department has announced plans to award $50m to Hewlett-Packard (HP) to boost its work on semiconductor technology.
The money will go towards the expansion and modernisation of an existing company facility in Oregon.
With the aim of supporting emerging technologies, the proposed funding will bolster the development of technologies that serve life science instrumentation.
Funding will also be provided for hardware used in AI applications and other projects, the department said.
HP CEO Enrique Lores said the funding “provides HP with an opportunity to modernise and expand our facility to further invest in our microfluidics technology”.
Two years ago, congress approved a $39bn subsidy programme for US semiconductor manufacturing and related components along with $75bn in government lending authority and a 25% investment tax credit worth an estimated $24bn.
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By GlobalData
Utilising HP’s expertise in microfluidics and microelectromechanical systems, the projects plan to build on the company’s experience with funding set to support the manufacture of silicon devices critical in life sciences lab equipment.
The devices are used in drug discovery, single cell research and cell line development.
US Commerce Secretary Gina Raimondo said the proposed $50m funding for the HP campus in Corvallis, Oregon, “shows how we are investing in every part of the semiconductor supply chain and how important semiconductor technology is to innovation in drug discovery and critical life science equipment”.
The technology will boost partner institutions including Harvard Medical School, the US Centers for Disease Control and Prevention, and Merck, according to the department.
Term sheets have also been announced with 17 companies offering more than $32bn in grants and up to $29bn in loans.
The department made further planned awards including $6.4bn (8.52trn won) to South Korea’s Samsung to expand its chip production in Texas.
Funding was also awarded to Intel in the form of $8.5bn in grants in March while Taiwan’s TSMC received $6.6bn (T$210.83bn) to build out its US production.
Memory chip maker Micron Technology won $6.1bn to help fund domestic chip factory projects; however, the Commerce Department states that the total funds awarded are yet to be finalised as the department carries out its due diligence.
