WASHINGTON, Aug 27 (Reuters) - The U.S. Commerce

Department said Tuesday it plans to award $50 million to HP

to support the expansion and modernization of an

existing company facility in Oregon that will boost key

semiconductor technologies.

The proposed funding will support technologies that serve

life sciences instrumentation and technology hardware used in

artificial intelligence applications and other projects, the

department said.

Congress in August 2022 approved a $39 billion subsidy

program for U.S. semiconductor manufacturing and related

components along with $75 billion in government lending

authority and a 25% investment tax credit worth an estimated $24

billion.

The projects build on HP's expertise in microfluidics and

microelectromechanical systems with funding set to support

manufacturing of silicon devices critical in life sciences lab

equipment used in drug discovery, singlecell research, and cell

line development.

Commerce Secretary Gina Raimondo said the proposed $50

million funding for the Corvallis, Oregon, HP campus "shows how

we are investing in every part of the semiconductor supply chain

and how important semiconductor technology is to innovation in

drug discovery and critical life science equipment."

The department said the technology will boost partner

institutions including Harvard Medical School, the U.S. Centers

for Disease Control and Prevention, and Merck ( MRK ).

HP CEO Enrique Lores said the funding "provides HP with an

opportunity to modernize and expand our facility to further

invest in our microfluidics technology."

The department has announced term sheets with 17 companies

offering more than $32 billion in grants and up to $29 billion

in loans.

It also made other major planned awards including $6.4

billion to South Korea's Samsung to expand chip

production in Texas.

Intel ( INTC ) won $8.5 billion in grants in March while

Taiwan's TSMC clinched $6.6 billion to build out its

American production and memory chip maker Micron Technology ( MU )

won $6.1 billion to help fund domestic chip factory

projects.

All the awards have yet to be finalized and amounts could

change after the Commerce Department conducts due diligence.