Microchip Technology (MCHP) drops plans to build Oregon chip factory, will work with Taiwan Semiconductor (TSM)) - Phoenix Business Journal

The newspaper quoted Greater Portland Inc. CEO Monique Claiborne as saying Microchip Technology has decided not to invest in new factories in the U.S.to meet its previously stated guidance for year-over-year sales growth in its fiscal third quarter, despite continued supply chain pressures.

The company has reiterated its plans to add 300 new jobs at its Gresham site, even without a new factory. Microchip Technology has an 826,500-square-foot facility 21015 S.E. Stark St. and makes microcontrollers for the military, auto makers and communications applications. It had about 860 employees in the area as of October.

With more than $50 billion in federal incentives for domestic semiconductor makers available through the CHIPS and Science Act, Arizona is in competition with other statesState and industry leaders have recognized that further plans are needed for states like Arizona to continue fostering their semiconductor ecosystems, which contain countless vendors, suppliers, ancillary businesses and customers in addition to the chip manufacturers, and to address current barriers and challenges like...

"Despite a global, connected economy, the pandemic disruptions of 2020 exposed the need to enhance resiliency across the entire semiconductor value chain. To ensure national security and economic stability, the U.S. recognized the need to focus on competitiveness in every aspect of the semiconductor industry," said a letter written by Arizona Commerce Authority President and CEO Sandra Watson in an ACA report.

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