US CHIPS Funding to Support Micron’s $50 Billion Investment Plan

The US semiconductor industry is experiencing a significant boost with the passing of the CHIPS and Science Act, which aims to subsidize capital spending by key players such as Globalfoundries, TSMC, and Samsung. Reports indicate that Samsung is planning to establish a third wafer fab in Texas at a cost of US$24 billion, while TSMC has agreed to build a third fab in Arizona to produce 2nm chips in the US.

Micron Technology Inc., based in Boise, Idaho, has also made headlines by announcing plans to construct memory chip wafer fabs in Idaho and New York. These developments are expected to create approximately 75,000 direct and indirect jobs in the US, providing a significant economic boost to the region.

According to Micron, the company has signed a non-binding preliminary memorandum of terms (PMT) amounting to US$6.1 billion to support leading-edge memory manufacturing in Idaho and New York. The investment includes the construction of a leading-edge memory fab in Boise, Idaho, and two additional fabs in Clay, New York. This move is seen as a strategic decision to enhance Micron's manufacturing capabilities and remain competitive in the global market.

As part of the agreement, Micron is eligible for various grants and incentives, including US Treasury tax credits and workforce grants to support training initiatives. The company anticipates creating 2,000 jobs in Idaho and 9,000 jobs in New York, contributing to the growth of the semiconductor industry in these states.

Commerce Secretary Gina Raimondo praised the proposed investments by Micron, highlighting President Biden's efforts to strengthen US technological leadership and generate high-quality employment opportunities. The construction of the Boise fab is already underway and is expected to be operational by 2025, with DRAM production slated to begin in 2026. In New York, construction of the first fab is scheduled to commence in 2025, with production expected to start in 2028.