Microchip plans to invest in expanding silicon carbide production capacity in the United States, using 8-inch wafer applications in the manufacturing technology.

Microchip Technology Inc. (NASDAQ: MCHP) has announced plans to invest $880 million in expanding its silicon carbide (SiC) and silicon (Si) production capacity in the United States. The company is focusing on the development and upgrade of its 50-acre, 580,000-square-foot Colorado Springs campus, which is crucial to the expansion's success. The upgrade will increase the capacity for SiC fabrication in automotive/EV, grid infrastructure, green energy, and aerospace and defense applications.

Ganesh Moorthy, President and CEO of Microchip Technology, stated that the Chips and Science Act is already positively impacting their business through the Investment Tax Credit, and they are seeking capacity expansion grants for several of their semiconductor factories, including the Colorado Springs Facility. The City of Colorado Springs and El Paso County, in partnership with the Colorado Springs Chamber of Commerce and the Economic Development Corporation, has awarded Microchip around $47 million in state and local government expansion incentives.

With the passage of the Chip and Science Act in 2022, Microchip's official website has announced that it will benefit from investment tax credits and potential additional grants. The financial incentives and other potential funds will support Microchip's specialized manufacturing technologies for products critical to the defense and various commercial industries.

Currently, Microchip's Colorado Springs campus produces 6-inch wafer products and employs more than 850 people. The new investment expansion will involve the manufacturing technology of 8-inch wafers, which will significantly increase the number of chips produced on the site. The facility is expected to create 400 new jobs, ranging from production specialists to technical positions in equipment procurement and management, process control, and test engineering. Moreover, the new investment will contribute approximately $1.4 billion to the local economy over the next 10 years.

In summary, Microchip Technology's $880 million investment in expanding its silicon carbide production capacity in the United States is an essential step towards increasing its SiC fabrication for various industries. The upgrade of its Colorado Springs campus and the manufacturing technology of 8-inch wafers will significantly increase the production of chips at the site and create job opportunities for the local community. With the support of the Chips and Science Act and government incentives, Microchip is poised for continued success in the semiconductor industry.