Microchip Technology, a leading supplier of microcontroller, mixed-signal, analog, and Flash-IP solutions, has recently announced plans to invest a massive USD 880 million to expand its manufacturing capacity at its Colorado Springs, Colorado facility. The investment is geared towards increasing the company’s silicon carbide (SiC) and silicon (Si) production capacity over the next few years, in response to the growing demand for semiconductors in various industries.
According to Microchip Technology, the expansion will involve ramping up production at its Colorado Springs fabrication campus, and developing and upgrading its 580,000-square-foot campus for increased SiC manufacturing. The additional SiC capacity will be used in automotive/E-Mobility, grid infrastructure, green energy, and aerospace and defense applications.
The expansion is also expected to result in the creation of 400 new jobs at the campus, ranging from production specialists to technical roles in equipment procurement and management, process control and test engineering. Currently, the company employs more than 850 people at its Colorado Springs campus, where it produces products from 6-inch wafers. The new manufacturing technology that Microchip is installing with the expansion will run on 8-inch wafers, which will significantly increase the number of chips produced at this location.
Microchip Colorado Springs has been partnering with the city and state for a long time, and the company is seeking capacity expansion grants for several of its semiconductor factories, including its Colorado Springs factory. In a statement, the President and CEO of Microchip Technology, Ganesh Moorthy, said that the CHIPS and Science Act is already making a positive impact on their business through the Investment Tax Credit. He also expressed optimism in the company’s bright future in the region, made possible by great partnerships, state and local incentives, and a strong local talented workforce.
The company has also been approved for state and local incentives of approximately USD 47 million for the expansion. Commenting on the development, the Colorado Springs Mayor, John Suthers, said, “We are very pleased Microchip has selected its Colorado Springs facility as the site for such a significant investment and expansion. We estimate this will grow our local economy by approximately $1.4 billion over the next 10 years and create roughly 400 new high-paying jobs for those living in the Pikes Peak Region. Ramping up the production of semiconductors is critical to satisfying growing demand across many industries, and Colorado Springs is proud to be one of the key locations where this effort is taking place.”