Micron Technology, a prominent player in the memory chip industry, is poised to secure a groundbreaking grant exceeding $6 billion from the U.S. Commerce Department. This significant investment is expected to establish domestic chip factory projects in New York and Idaho, with the dual objectives of bolstering domestic semiconductor production and generating thousands of employment opportunities.
The announcement, expected next week, could mark the largest private investment in U.S. history.
This is integral to Micron’s expansive vision of constructing state-of-the-art chip plants in New York and Idaho over the next two decades.
This ambition was first unveiled in October 2022 when Micron announced plans to build the largest semiconductor facility ever seen in the United States. The financial backing aims not only to bolster Micron’s commitment to preserving 50,000 jobs but also to catalyze a whopping $100 billion investment and channel millions of dollars into community development initiatives.
Micron had earlier stated that its development plans required it to receive a combination of sufficient grants, investment tax credits, and local incentives to address the cost difference compared to overseas expansion and boost domestic production with regards to increased international competition.
US aims at boosting CHIPS’ ecosystem
The source of this substantial funding lies in President Joe Biden’s CHIPS and Science Act, which aims to reduce reliance on foreign chip sources. Micron’s grant adds to a series of recent initiatives aimed at revitalizing the domestic semiconductor industry, including $20 billion allocated to Intel and a $1.5 billion grant for GlobalFoundries.
The overarching objective of the CHIPS Act is to curtail dependence on foreign semiconductor sources, particularly China and Taiwan, against the backdrop of a notable decline in the U.S. share of global semiconductor manufacturing capacity, which plummeted from 37% in 1990 to a mere 12% in 2020.
While Micron Technology currently focuses on expansion on domestic soil, the company is also actively pursuing projects in China, India, and Japan. Nevertheless, Micron underscores the critical importance of financial funding from the state in order to revitalize the sector in the country.
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