Microchip Technology suspends application for US semiconductor subsidies

Microchip Technology Inc. has decided to suspend its application for U.S. semiconductor subsidies, becoming the first high-profile company to withdraw from a program aimed at revitalizing the U.S. chip manufacturing industry, according to people familiar with the matter. The struggling chipmaker was expected to receive $162 million in subsidies from the Chips and Science Act to support its factories in Oregon and Colorado. However, the company subsequently furloughed employees at its Oregon plant twice and announced plans to close a plant in Arizona, which will affect about 500 employees.