Microchip Technology, a supplier of microchips for consumer and defense technology, has received a $162m grant from the US Department of Commerce as part of the country’s Chips for America scheme. The grant will support the production of semiconductors and microchip technology in the US. Microchip Technology plans to use the funds to expand a production plant in Colorado and Oregon. In addition, the company has announced the opening of a new research and design facility in the UK. The facility, located in Cambridge, will focus on developing IoT and automotive solutions and is expected to employ around 200 workers. The US government’s investment in Microchip Technology is part of its broader effort to strengthen the domestic semiconductor industry and reduce reliance on foreign producers. The funding comes at a time when the US has been implementing new trade controls to limit the export of sensitive technology needed in chip production. These controls have temporarily blocked chipmaker ASML from exporting lithography equipment to China since October 2023.