US Government Offers $13 Billion to Micron for Domestic Chip Production
In a move to strengthen domestic semiconductor production, the US government has pledged over $13 billion in direct funding and loans to Micron. This support aims to boost the country’s chip manufacturing capabilities and create more jobs. As part of the investment, Micron plans to build two new facilities in the US, with a focus on chip manufacturing. This investment is expected to attract private investments of $50 billion by 2030.
The US government’s funding is aligned with Micron’s plan to invest up to $125 billion in New York and Idaho over the next two decades. The goal is to establish a “memory manufacturing ecosystem” in the US. The first two fabrication plants, or fabs, of a planned four-fab ‘megafab’ will be constructed in New York, specializing in the production of DRAM chips. Additionally, a high-volume manufacturing facility will be built in Idaho.
The expansion plans by Micron are expected to provide a significant boost to the US domestic semiconductor industry and create around 20,000 construction and facility jobs. The US Chips Act has also granted Micron the option to obtain loans of up to $7.5 billion, further supporting its growth.
Gina Raimondo, the US Secretary of Commerce, emphasizes the importance of memory chips as a foundational component of advanced technologies. The government’s investment in Micron is part of the Chips project, which aims to bring back the development and production of advanced memory semiconductor technology to the US. Raimondo sees this as a significant step in rebuilding America’s capacity for critical capabilities that have been lacking for nearly two decades.
This recent funding for Micron follows a series of strategic investments made by the US government in the semiconductor industry. Just this month, Samsung received a non-binding loan of up to $6.4 billion to invest in semiconductor projects in Texas. Similarly, TSMC has received billions of dollars in subsidies and loans to increase semiconductor production. Additionally, Intel has been granted $8.5 billion to enhance its domestic production capabilities.
The US government’s commitment to supporting semiconductor manufacturers reflects the growing recognition of the importance of a robust domestic chip industry. With increasing global demand for chips, these investments aim to ensure that the US remains competitive and self-reliant in this critical sector.
Overall, the funding provided to Micron and other semiconductor companies underscores the government’s dedication to strengthening the US semiconductor industry. By incentivizing domestic chip production, the US aims to secure its position as a leader in advanced technologies and foster economic growth through job creation and private investments.
