The US Commerce Department said on Thursday it plans to award Microchip Technology (MCHP.O) $162 million in government grants to step up US production of semiconductors and microcontroller units (MCUs) key to the consumer and defense industries.

The funds will allow Microchip to triple production of mature-node semiconductor chips and microcontroller units at two U.S. factories, officials said.

The components are crucial for cars, washing machines, cell phones, internet routers, airplanes, and the defense-industrial base.

The planned award to Microchip, which consists of $90 million to expand a fabrication facility in Colorado and $72 million for expansion of a similar facility in Oregon, will help cut reliance on foreign production, officials said.

The chips are crucial for the US automotive, commercial, industrial, defense, and aerospace industries, said Lael Brainard, White House National Economic Council director.

The award will help reduce "reliance on global supply chains that led to price spikes and long wait lines for everything from autos to washing machines during the pandemic," Brainard added.