The US Commerce Department announced on Tuesday that it will award $50 million to HP for the expansion and modernization of its Oregon facility, aimed at advancing key semiconductor technologies. This funding will enhance technologies crucial for life sciences instrumentation and technology hardware used in AI applications, among other projects.

The funding follows Congress’s approval in August 2022 of a $39 billion subsidy program for US semiconductor manufacturing, alongside $75 billion in government lending authority and a 25% investment tax credit valued at approximately $24 billion.

HP’s initiative will build on its strengths in microfluidics and microelectromechanical systems, with the grant supporting the production of silicon devices essential for life sciences lab equipment used in drug discovery and cell research.

Commerce Secretary Gina Raimondo emphasized that this investment underscores the commitment to every aspect of the semiconductor supply chain and its importance in advancing drug discovery and critical life science technologies. The technology supported by this funding will benefit institutions such as Harvard Medical School, the CDC, and Merck.

HP CEO Enrique Lores welcomed the grant as an opportunity to modernize and expand their facility, further investing in microfluidics technology.

The Commerce Department has also released term sheets with 17 companies, offering over $32 billion in grants and up to $29 billion in loans. Recent major awards include $6.4 billion to Samsung for expanding chip production in Texas, $8.5 billion to Intel, $6.6 billion to TSMC for American production, and $6.1 billion to Micron Technology for domestic chip factory projects.