Microchip Technology Inc. Nears Deal Under CHIPS Act, Industry Giants Anticipate Awards Amid Political Uncertainty

As Silicon Valley eyes the unfolding situation, Microchip Technology Inc. has signaled good news. The Chandler-based giant is on the brink of finalizing a highly anticipated deal with U.S. Department of Commerce officials for an award under the CHIPS Act, as the company’s CEO Ganesh Moorthy discussed in a recent earnings call. “We don’t yet have an agreement on the CHIPS Act,” Moorthy said, in a statement obtained by

ABC15

.

Meanwhile, other major players in the semiconductor arena are also seeing movement in negotiations. According to sources briefed on the matter, TSMC, GlobalFoundries, and an unnamed third chipmaker are close to pocketing their own final CHIPS Act awards, as reported by

Reuters

. Upon inking deals over $10 million, the Commerce Department, as is procedure, notified Congress — indicating a forward momentum in the distribution of funds aimed at bolstering U.S. chip manufacturing and diminishing reliance on Asian production circles.

This race to cement terms with the federal government assumes greater urgency due to political contingencies. Former President Donald Trump, who has previously criticized the CHIPS Act on Joe Rogan’s podcast for giving “billions of dollars for rich companies,” could throw a wrench in the works should his possible re-election bid succeed, as per

Reuters

.

Rumblings on Capitol Hill reveal a precautionary tale. While Republican House Speaker Mike Johnson hinted at a potential repeal of the Act, companies like Intel, still awaiting an $8.5 billion grant, have made their position crystal clear. “We will continue to do our part and urge the Department of Commerce to accelerate and streamline the process to meet our collective goal to create a globally competitive U.S. semiconductor ecosystem,” Intel relayed, as stated by

Reuters

.

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