Micron Technology's $6.1 billion federal investment under the CHIPS and Science Act will fund new semiconductor fabs in New York and Idaho.
Micron Technology, a global leader in the semiconductor industry, is set to receive $6.1 billion in grants from the U.S. Department of Commerce, as announced by Senate Majority Leader Chuck Schumer. The funding is part of the CHIPS and Science Act, aimed at bolstering domestic chip manufacturing capacity.
Micron plans to construct its first two chip fabrication plants (fabs) in Onondaga County, New York. The construction is expected to begin next year. This strategic move is projected to create approximately 9,000 jobs at the chip fabs and over 40,000 jobs in construction and related supply chains.
Senate Majority Leader Schumer, who co-sponsored the CHIPS and Science legislation, described the federal investment as "one of the largest single-direct federal investments in central New York’s history." He emphasized the importance of this funding in transforming the Syracuse region into a global hub for semiconductor production.
Despite the preliminary agreement, the Department of Commerce must still review Micron's application and proposed project before finalizing the financial award. Schumer hailed the investment as historic, supporting Micron's ambitious $100-plus billion project that is expected to generate an estimated 50,000 jobs.
New York Governor Kathy Hochul signed the Green CHIPS legislation, which offers tax credits to semiconductor manufacturing. Micron stands to benefit from $5.5 billion in tax credits under this state initiative. Governor Hochul expressed pride in securing the deal and pledged to revitalize the upstate economy.
The CHIPS Act was enacted in response to the United States' increasing reliance on foreign-made semiconductors, which became evident during the supply-chain crisis amid the pandemic. Semiconductors are crucial components in a wide range of devices, including cell phones, vehicles, appliances, and medical equipment.
The Act allocates $52.6 billion to support the semiconductor sector, with $28 billion earmarked for advanced chip manufacturing subsidies. This comes as the Commerce Department faces over $70 billion in subsidy requests, in addition to $75 billion in lending authority. The U.S. has seen its share of global semiconductor manufacturing capacity drop from 37 percent in 1990 to 12 percent in 2020. This decline, coupled with geopolitical concerns surrounding Taiwan's leading chip manufacturer TSMC, has prompted U.S. lawmakers to advocate for strengthening domestic chip production.
