HP Inc. (HPQ, Financial) has been granted up to $53 million in direct funding as part of the U.S. CHIPS Act to enhance next-generation technology and support the "lab-to-fab" manufacturing ecosystem domestically. This funding will aid the expansion and modernization of its Corvallis, Oregon facility, transitioning research and development efforts into commercial manufacturing. This move follows a memorandum of understanding announced last year, with funding contingent on milestone achievements by HPQ.
U.S. Commerce Secretary Gina Raimondo highlighted the significance of the technology developed by companies like HPQ, emphasizing how it will create unprecedented advancements for future generations. The Biden administration is investing in the semiconductor ecosystem to bolster and secure domestic capabilities, positioning the U.S. to maintain its competitive edge globally.
CHIPS funding will also support the production of key silicon components for life science laboratory equipment, crucial for drug discovery, single-cell research, and cell line development. This funding allocation is part of the Biden administration's efforts to finalize agreements before former President Trump's potential return to office. The Department of Commerce has reached preliminary agreements with over 20 companies, including finalized agreements with TSMC (TSM), Intel (INTC), GlobalFoundries (GFS), Entegris (ENTG), and Micron Technology (MU).
