The US Government has recently announced a massive $6.1 billion investment in Micron Technology for plant expansion in Idaho and New York. This investment aims to support the construction of advanced chip-manufacturing fabs and is a part of the CHIPS and Science law, co-sponsored by Senate Majority Leader Chuck Schumer.
Micron Technology, a leading provider of memory and storage solutions, will receive the funding from the Department of Commerce to build its first two chip fabs in Onondaga County, New York. The construction is expected to begin next year and create approximately 9,000 jobs at the chip fabs, along with more than 40,000 jobs in construction and the supply chain.
This investment is being hailed as one of the largest single-direct federal investments in central New York’s history. Senator Schumer expressed his excitement, stating, “And now with billions in federal investment from my CHIPS and Science law, we are taking the next steps to get shovels in the ground to transform the Syracuse region and all of upstate into a global hub for the chips that will power America’s future.”
Micron’s expansion project will receive further support from tax credits provided by the Green CHIPS legislation signed by New York Governor Kathy Hochul. Micron is set to receive $5.5 billion in tax credits to bolster its semiconductor manufacturing projects. Governor Hochul expressed her pride in securing this transformative deal and highlighted the positive impact it would have on revitalizing the upstate economy.
The CHIPS Act, passed in response to America’s over-reliance on imported semiconductors, aims to address the supply chain crisis that occurred during the pandemic. The act provides $52.6 billion in support for the sector, with $28 billion dedicated to government subsidies for advanced chip manufacturing. The Commerce Department has received over $70 billion in requests but has allocated $28 billion so far. Additionally, it has $75 billion in lending authority.
The need for domestic semiconductor manufacturing has become increasingly apparent, as the US share of global semiconductor manufacturing capacity has fallen from 37 percent in 1990 to only 12 percent in 2020. Lawmakers have expressed concerns about the heavy dependence on chips manufactured in Taiwan, particularly due to China’s territorial claims over the region.
The investment in Micron Technology signifies a significant step towards reducing reliance on foreign-made semiconductors and ensuring a secure supply chain for critical technologies. It also promises to create thousands of jobs and revitalize the economy of central New York.
In conclusion, the US Government’s investment of $6.1 billion in Micron Technology’s plant expansion in Idaho and New York is a major development that aims to bolster domestic chip manufacturing capabilities. With the CHIPS and Science law and tax credits from the Green CHIPS legislation, this investment will not only create thousands of jobs but also establish the region as a global hub for chip production. This move highlights the importance of securing the semiconductor supply chain and reducing reliance on foreign manufacturers.
