Dive Brief:
- Micron Technology will invest up to $100 billion over the next 20-plus years to construct the largest semiconductor fabrication plant in the U.S., the company announced last Tuesday.
- The chipmaker will complete its initial $20 billion investment in the Clay, New York, facility by 2030, which could expand to include up to 2.4 million feet of environmentally controlled space, according to the release.
- Construction on the facility is slated to begin in 2024, after site preparation gets underway next year. Micron said production will accelerate over the second half of the decade in line with industry demand.
Dive Insight:
Micron’s New York facility announcement is one in a series of domestic semiconductor production investments manufacturers have made since August, as they take advantage of funding made available by the CHIPS and Sciences Act.
The Idaho-based chipmaker said the manufacturing facility will complement its $15 billion memory production site in Boise, Idaho, which it broke ground on last month. The two sites are part of Micron’s plan to invest $40 billion in U.S. memory manufacturing throughout the decade.
“I am grateful to President Biden and his Administration for making the CHIPS and Science Act a priority,” Micron President and CEO Sanjay Mehrotra said in the release. He also credited Senate Majority Leader Chuck Schumer and New York state and local officials for making the investment possible.
Both facilities will support Micron’s strategy to make 40% of its dynamic random access memory chips in the U.S. in the next decade, as it works to build out its domestic supply chain and technological lead.
In addition to the anticipated tax credits and grants Micron will secure under the CHIPS Act, which sets aside $52.7 billion to support chip production across the industry, the company will receive $5.5 million in tax credits from New York state, according to the release.
New York passed its $10 billion Green CHIPS bill in June to encourage chip production in the state. Using the Excelsior Jobs Tax Credits Program, the state will offer manufacturers up to 20 years of tax credits for semiconductor projects based on qualifying sustainability measures and the creation of at least 500 new jobs.
As part of the state deal, Micron will also contribute $250 million to the Green CHIPS Community Investment Fund, designed to expand and prepare the local workforce for careers using the technology. The funds will go towards workforce training, education programs, housing and other community initiatives, according to the release.
“Micron’s investment will make New York’s semiconductor corridor into a major engine powering our economy and will supply ‘Made in New York’ microchips to everything from electric vehicles, 5G, and defense technology to personal computers and smartphones,” Schumer said in a statement. “The bottom line is that without the CHIPS and Science legislation, Micron would have decided to build its mega-fab overseas.”
