HP secures $50M in proposed CHIPS Act funding for Oregon site

HP Inc. (NYSE:HPQ) has signed a tentative agreement with the U.S. Department of Commerce to receive up to $50M in proposed direct funding under the CHIPS and Science Act.

The proposed aid would support the expansion and modernization of HP’s (HPQ) existing facility in Corvallis, Oregon, while creating over 250 manufacturing and construction jobs.

Among other products, the proposed 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 capabilities in microfluidics and microelectromechanical systems, these devices allow for increased speed and precision during life sciences R&D.

“The Biden-Harris Administration’s proposed investment in HP shows how we are investing in every part of the semiconductor supply chain and how important semiconductor technology is to innovation in drug discovery and critical life science equipment,” said U.S. Secretary of Commerce Gina Raimondo.

The expansion facilitated by the proposed funding would bolster the lab-to-fab ecosystem that the company has established in Corvallis, which also serves as one of three R&D Centers for Excellence within its global footprint.

The company’s devices serve important focus areas for public health initiatives, the department said, enabling performance efficiencies for partner institutions including Harvard Medical School, the US Center for Disease Control, and Merck (MRK).

The CHIPS Act funding aims to increase U.S. semiconductor manufacturing and research, especially in advanced semiconductors.

Several companies including, Intel (INTC), SK hynix, Samsung (OTCPK:SSNLF), Taiwan Semiconductor Manufacturing (TSM), Micron Technology (MU) and Texas Instruments (TXN) have been granted funds under the act.