# Pentagon Plans $1.5B North Carolina Chip Investment

President Donald Trump announced on October 20, 2026, that the Pentagon plans to invest $1.5 billion to expand semiconductor production in North Carolina. The announcement did not identify a recipient, funding or acquisition mechanism, schedule, or solicitation, so it does not yet present a defined bid opportunity. Separately, Commerce Secretary Howard Lutnick announced a Sibelco quartz-manufacturing facility in the state; the signals do not establish that Sibelco is connected to the Pentagon investment.

- The investment could create future opportunities for semiconductor producers and suppliers, but contractors cannot determine eligibility or pursue a specific procurement from the announcement alone.
- Companies should distinguish the Pentagon’s announced investment from Sibelco’s separate facility announcement; no award or contractual relationship between them was specified.
- Contractors can use the announced North Carolina focus to assess their semiconductor production and materials capabilities, while looking for the follow-on announcements and formal procurement information cited in the signal.

**Jurisdictions:** federal
**Industries:** Defense & Military, Information Technology
**Topics:** Grants & Funding
**Published:** October 21, 2026

### Government Entities
- U.S. Department of Defense (DoD)
- U.S. Department of Commerce (Commerce)

### Vendors
- Sibelco ()

### Key Quotes
> The Department of War will be investing $1.5 billion dollars to produce cutting-edge semiconductor chips right here in North Carolina.
> — Donald Trump, President

> It is basically the foundation of semiconductors, and they’re going to build it right here in North Carolina.
> — Howard Lutnick, Commerce Secretary

### Sources
- [Trump says Pentagon will invest $1.5 billion into North Carolina chip production](https://thehill.com/homenews/administration/6161642-trump-pentagon-semiconductor-investment) - The Hill