The Biden administration announced a $162 million investment in microchip technology on Thursday in an attempt to boost domestic production of computer chips.

The U.S. Commerce Department picked Arizona-based manufacturer Microchip Technology to handle the expansion. A Colorado-based plant will receive $90 million in improvements, while another $72 million will go to expanding a factory in Gresham, Oregon.

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The federal funding comes from the 2022 CHIPS and Science Act, a bipartisan law aimed at strengthening domestic manufacturing, supply chains, and national security. The law includes billions of dollars to be used for U.S. chip manufacturing.

The expansion is expected to create 700 construction and manufacturing jobs over the next 10 years. Microchip Technology will triple its domestic production thanks to the investment and become less reliant on factories in Thailand and the Philippines.

“Semiconductors are the key input in so many goods that are vital to our economy,” said Lael Brainard, director of the White House National Economic Council.

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Government officials expect to make additional funding commitments this year.

The first grant of the CHIPS Act, worth $35 million, was awarded to BAE Systems to expand a New Hampshire factory making chips for military jets.