HP to Receive $50 Million from U.S. Commerce Department

By David Shepardson

WASHINGTON (Reuters) – The U.S. Commerce Department announced plans to award $50 million to HP (NYSE:HPQ) for the expansion and modernization of its facility in Oregon, enhancing key semiconductor technologies.

The funding will support technologies related to life sciences instrumentation and hardware for artificial intelligence applications, as stated by the department.

In August 2022, Congress approved a $39 billion subsidy program for U.S. semiconductor manufacturing, along with $75 billion in lending authority and a 25% investment tax credit estimated at $24 billion.

This initiative builds on HP’s strengths in microfluidics and microelectromechanical systems. The funding will help produce silicon devices essential for life sciences lab equipment used in drug discovery, single-cell research, and cell line development.

Commerce Secretary Gina Raimondo emphasized that the proposed funding for HP’s Corvallis campus illustrates investment across the semiconductor supply chain, crucial for innovation in drug discovery and life science equipment.

The project will also support partner institutions such as Harvard Medical School, the U.S. Centers for Disease Control and Prevention, and Merck.

HP CEO Enrique Lores commented that the funding allows the company to modernize and expand its facility, further investing in microfluidics technology.

The department has established agreements with 17 companies offering over $32 billion in grants and up to $29 billion in loans.

Other notable awards include $6.4 billion to South Korea’s Samsung to enhance chip production in Texas, $8.5 billion to Intel in March, $6.6 billion to TSMC for American production, and $6.1 billion to Micron Technology for domestic chip projects.

All awards are pending finalization and amounts may change following the Commerce Department’s due diligence process.