Micron Secures $6.1 Billion Chips Act Funding For Developing Semiconductor Fabs in USA

Micron Technology, one of the world’s largest semiconductor companies, and the US Administration today announced that they have signed a non-binding preliminary memorandum of terms (PMT) for USD 6.1 billion in funding under the CHIPS and Science Act to support planned semiconductor fabrication plants in the USA.

US President Joe Biden with Micron CEO Sanjay Mehrotra during Investing in America Summit

The CHIPS and Science Act grants of USD 6.1 billion will support Micron’s plans to invest approximately USD 50 billion in gross capex for U.S. domestic leading-edge memory manufacturing through 2030. These grants and additional state and local incentives will support the construction of one leading-edge memory manufacturing fab to be co-located with the company’s existing leading-edge R&D facility in Boise, Idaho, and the construction of two semiconductor fabs in New York.

The investments announced today will be utilized to develop a leading-edge R&D and manufacturing center in Boise, Idaho, and a four-fab manufacturing complex in Clay, New York. The Clay, New York, fab will be built over the next two decades, with a potential investment totaling up to USD 125 billion.

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In addition to the CHIPS grants, Micron expects to benefit from the U.S. Treasury Department’s Investment Tax Credit, which provides a credit of 25% for qualified capital investments. The state of New York has made up to USD 5.5 billion available in incentives over the life of the project.

Micron’s semiconductor factories in the USA are expected to create approximately 75,000 domestic jobs over the next 20-plus years. Micron’s plans will help to bolster the economies and quality of life in both Idaho and New York. The two projects, as planned, will represent the single largest private investments ever made in the states of Idaho and New York.

These federal and state incentives, combined with projected power cost advantages, along with R&D and manufacturing co-location synergies, enable Micron to achieve cost-competitive, leading-edge semiconductor manufacturing in the U.S.

“This is a historic moment for semiconductor manufacturing in the U.S.,” said Micron President and CEO Sanjay Mehrotra. “Micron’s leading-edge memory is foundational to meeting the growing demands of artificial intelligence, and we are proud to be making significant memory manufacturing investments in the U.S., which will create many high-tech jobs.”

Read: TSMC to Invest $65 Billion for the Development of Semiconductor Factories in Arizona, USA

Microns Boise Idaho Semiconductor Fab: an Overview

Boise, Idaho Semiconductor Fab: Render

Micron Technology has embarked on a historic project in Boise, Idaho, with a planned investment of approximately USD 15 billion. This project involves the construction of a new leading-edge memory manufacturing fab, marking the first new memory manufacturing fab built in the U.S. in 20 years.

The project aligns with the goals of the CHIPS and Science Act Notice of Funding Opportunity (NOFO) to enhance U.S. economic and national security by securing a leading edge in critical technologies and rebuilding a highly complex but critical manufacturing sector in the U.S. The co-location of manufacturing with R&D will allow the U.S. to maintain a critical advantage in leading-edge technology for next-generation memory technology innovation.

The new fab is expected to create approximately 2,000 direct jobs with Micron and an additional 15,000 jobs in the community over the next decade. The memory produced at the new facility will be used across a wide range of fields, including automotive, data centers, artificial intelligence, and 5G adoption.

In support of Micron’s Idaho expansion efforts, Micron has established the Idaho Community Investment Framework, which reflects the shared priorities Micron and its partners have identified to lead inclusive growth across the state. This framework was announced alongside the State of Idaho and the City of Boise, longtime advocates of state and local efforts to bolster the success of new manufacturing in Idaho.

Micron’s New York Clay Semiconductor Fab: A Project Overview

Clay, New York Semiconductor Fab: Render

This project involves the construction of a new semiconductor manufacturing facility campus, also known as a "megafab" site. The new Micron campus, which will be the company's largest ever built and the largest semiconductor fab in the USA, is expected to be built out over an approximately 20-year period. It will consist of the construction of four memory fabrication facilities (Fabs).

Micron plans to invest up to USD 100 billion over the course of the next 20 years, with a $120 billion first phase investment. This significant investment is part of Micron's broader strategy to invest in leading-edge memory manufacturing. The new factory is expected to create approximately 9,000 direct jobs with Micron and over 40,000 community jobs. Construction is expected to start in CY24, with production ramping up in the second half of the decade.

Read: US to Grant Samsung $6.6 Billion Subsidy for Texas Semiconductor Plant Expansion

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