Microchip Technology Inc., a leading provider of smart, connected and secure embedded control solutions, plans to expand its silicon carbide and silicon production capacity at its manufacturing facility in Colorado Springs, Colorado. The $880 million project is expected to create 400 jobs over the next several years.

The company will develop and upgrade its 50-acre, 580,000-square-foot campus for increased SiC manufacturing for use in automotive/E-Mobility, grid infrastructure, green energy, and aerospace and defense applications. The campus currently produces products from 6-inch wafers. The manufacturing technology that Microchip is installing will run on 8-inch wafers, which will significantly increase the number of chips produced at this location.

“Microchip Colorado Springs has a long history of partnering with the city and state and we applaud their continued support of our efforts to advance the semiconductor industry in the U.S., said President and CEO of Microchip Technology Ganesh Moorthy said. “The CHIPS and Science Act is already making a positive impact on our business through the Investment Tax Credit and we are seeking capacity expansion grants for several of our semiconductor factories, including our Colorado Springs factory. We see a bright future in the region made possible by great partnerships, state and local incentives, and a strong local talented workforce.”

Working in conjunction with the Colorado Springs Chamber & Economic Development Corporation, the City of Colorado Springs and El Paso County also announced that Microchip was approved for state and local incentives of approximately $47 million for the expansion.

“Microchip is an excellent partner to both the state and its local community, and this investment builds upon an important and thriving relationship in the wake of the passage of the CHIPS and Science Act,” noted Eve Lieberman, Office of Economic Development and International Trade Executive Director. “Governor Polis has placed the attraction and retention of the semiconductor industry companies at the forefront of Colorado’s economic strategy.”

Headquartered in Chandler, Arizona, Microchip Technology’s easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs which reduce risk while lowering total system cost and time to market. The company’s solutions serve more than 125,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets.

“Microchip’s expansion in Colorado Springs and El Paso County puts our region on the map for investment from the CHIPS and Science Act. We are proud to lead Microchip’s expansion project and support the reshoring of these important manufacturing jobs to the Pikes Peak region,” added Johnna Reeder Kleymeyer, President and CEO, Colorado Springs Chamber & Economic Development Corporation.