By David Shepardson
The U.S. Commerce Department has announced plans to award $50 million to HP (NYSE:) to support the expansion and modernization of a facility in Oregon, boosting key semiconductor technologies. This move comes as part of a larger $39 billion subsidy program for U.S. semiconductor manufacturing approved by Congress in August 2022.
The funding will specifically focus on technologies serving life sciences instrumentation and technology hardware used in artificial intelligence applications. HP's expertise in microfluidics and microelectromechanical systems will be utilized to manufacture silicon devices critical in life sciences lab equipment.
Commerce Secretary Gina Raimondo emphasized the importance of semiconductor technology in innovation for drug discovery and critical life science equipment. Partner institutions such as Harvard Medical School, the U.S. Centers for Disease Control and Prevention, and Merck are expected to benefit from these advancements.
HP CEO Enrique Lores expressed gratitude for the funding, stating that it provides an opportunity to modernize and expand their facility for further investment in microfluidics technology. The Commerce Department has also announced term sheets with 17 companies for grants and loans, including major awards to companies like Samsung, Intel, TSMC, and Micron Technology for chip production and factory projects.
Analysis:
The $50 million investment in HP by the U.S. Commerce Department signifies a strategic move to strengthen semiconductor technologies in the country. This funding not only supports HP's expansion and modernization efforts but also highlights the significance of semiconductor technology in various industries, particularly in life sciences and artificial intelligence. The collaboration with partner institutions and the focus on innovation for drug discovery and critical life science equipment underscore the potential impact of this investment on advancing technological capabilities and research in these fields. Overall, this initiative is poised to drive growth and innovation in the semiconductor sector, benefiting both HP and the broader industry ecosystem.
