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Biden-Harris Administration Announces CHIPS Incentives Award with HP to Support Domestic Manufacturing of Next-Gen Technologies and ‘Lab-to-Fab’ Ecosystem
January 13, 2025 | U.S. Department of CommerceEstimated reading time: 2 minutes
The Biden-Harris Administration announced that the U.S. Department of Commerce awarded HPI Federal LLC up to $53 million in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. This award will support the expansion and modernization of the existing facility of HP Inc. (“HP”) in Corvallis, Oregon, which is part of the company’s “lab-to-fab” ecosystem in the region that spans from research and development (R&D) activities to commercial manufacturing operations, and serves as one of three R&D Centers for Excellence within the company’s global footprint. The award comes after the previously signed preliminary memorandum of terms, announced on August 27, 2024, and the completion of the Department’s due diligence. The Department will disburse the funds based on HP’s completion of project milestones.
“Companies like HP are developing the technologies that will spur unprecedented breakthroughs for generations to come,” said U.S. Secretary of Commerce Gina Raimondo. “By investing in companies and R&D projects across the semiconductor ecosystem, the Biden-Harris administration is helping to build and secure the domestic semiconductor capabilities that will help the United States continue to out-compete and out-build the rest of the world.”
Among other products, the CHIPS funding would support the manufacturing of silicon devices that are key components of life sciences lab equipment, which are used in drug discovery, single-cell research, and cell line development. By leveraging HP’s expertise in microfluidics and microelectromechanical systems (MEMS), these devices allow for increased speed and precision during life sciences R&D. The project is estimated to create and sustain nearly 150 construction jobs and over 100 manufacturing jobs.
“From semiconductors to supercomputers, President Biden’s Investing in America agenda is ensuring that America continues to be a global leader for invention and entrepreneurship,” said White House Deputy Chief of Staff Natalie Quillian. “Today's announcement with HP will build on the company’s 86-year history driving American innovation and support U.S. competitiveness in the 21st century.”
“HP is pleased its CHIPS grant has been finalized, which will bolster semiconductor production and innovation in the United States. This significant development will accelerate our work and innovation in Micro-Electro-Mechanical Systems (MEMS) technology, which directly benefits the U.S. semiconductor and life sciences industries, as well as strengthens global competitiveness,” said Enrique Lores, President and CEO, HP.
As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, production, and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.
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