Micron is set to receive more than $6 billion in government grants to enhance domestic production, as announced by the Commerce Department.
President Joe Biden will be visiting a semiconductor facility in upstate New York to showcase his administration’s efforts to bring chip manufacturing back to the United States.
A preliminary agreement has been reached with Micron, an American memory chipmaker, where the company will receive $6.14 billion in direct funding through the CHIPS and Science Act signed into law by President Biden in 2022.
In addition to the grant, Micron will also be eligible for up to $7.5 billion in loans as part of the incentive package to boost domestic chip manufacturing.
The deal has been praised by Senate Majority Leader Chuck Schumer, who emphasized the importance of building the future in places like Syracuse, New York, rather than overseas.
Micron plans to use the government incentive to construct two fabs in Clay, New York, and one fab in Boise, Idaho, with an aim to generate $50 billion in private investment by 2030. Over the next two decades, the company is committed to investing up to $125 billion across both states to establish a leading-edge memory manufacturing ecosystem.
This initiative is expected to be the largest private sector investment in the history of New York and Idaho, marking a significant milestone in U.S. semiconductor leadership, according to Lael Brainard, director of the White House National Economic Council.
The COVID-19 pandemic highlighted the vulnerabilities of global supply chains and the need for domestic manufacturing, particularly in critical industries like semiconductor chips.
The CHIPS and Science Act aims to reduce reliance on imported chips by providing $53 billion in subsidies to support the construction of semiconductor plants across the country. Micron’s project is the seventh to receive incentives under this act, with a total of $29 billion in grants provided by the government to generate $348 billion in private sector investment.
Micron’s projects in Idaho and New York are expected to create over 20,000 construction and direct manufacturing jobs, along with tens of thousands of indirect jobs, contributing to the growth of the semiconductor industry in the United States.
