The Biden-Harris Administration has announced a significant award from the U.S. Department of Commerce to Micron Technology, amounting to up to $6.165 billion in direct funding under the CHIPS Incentives Program. This decision follows a previously signed preliminary memorandum and completes the department's due diligence process.
This funding is part of Micron’s long-term plan to invest around $100 billion in New York and $25 billion in Idaho over two decades. The projects are expected to create approximately 20,000 jobs and increase the U.S.'s share of advanced memory manufacturing from less than 2% today to about 10% by 2035. Funds will be released based on Micron achieving project milestones.
In addition, the administration revealed a non-binding Preliminary Memorandum of Terms with Micron for up to $275 million in proposed funding aimed at expanding its Manassas, Virginia facility. This expansion will require an estimated capital expenditure of $2 billion and is projected to generate over 400 manufacturing jobs along with up to 2,700 community jobs during peak construction periods.
U.S. Secretary of Commerce Gina Raimondo stated: “Memory chips are foundational to all advanced technologies, and thanks to the bipartisan CHIPS and Science Act, America is rebuilding its capacity to produce these critical capabilities.” She emphasized that this investment aligns with one of the CHIPS program's core objectives – enhancing domestic production capabilities crucial for AI leadership and national security.
Micron President and CEO Sanjay Mehrotra remarked: “As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the U.S., strengthening the country’s technology leadership.” He expressed gratitude for legislative support and partnerships aiding their initiatives.
The awards align with CHIPS for America's goal of revitalizing domestic semiconductor manufacturing. Since its inception, it has facilitated more than $450 billion in private investments across various states through public incentives.
For more details on this development, interested parties can visit the CHIPS for America website.
