Micron secures $13bn funding package from White House

25th Apr 2024 10:26

(Sharecast News) - Micron Technology has secured more than $6bn in direct funding from the US government to help build leading-edge chip factories, it was announced on Thursday.

In a deal struck under the 2022 Chips and Science Act, the US firm will receive funds of up to $6.14bn as well as being eligible for up to $7.5bn in loans.

The cash will be used to build two plants in Clay, New York, and one in Boise, Idaho, creating more than 20,000 jobs. All three will produce leading-edge memory chips known as Dram.

The White House said Micron would invest up to $125bn in total in both states over the next two decades, "to build a leading-edge memory manufacturing ecosystem".

It continued: "Semiconductors were invented in America. But today, the US produces only about 10% of the world's chips and none of the most advanced ones. Thanks to President Biden's Chips and Science Act, that is changing."

The Chips Act was signed into law in August 2022. It is intended to boost research and manufacturing of semiconductors in the US, as part of a drive by the Biden administration to refocus supply chains away from Asia.

Similar funding packages have been struck with rival chipmakers Intel and Samsung in recent weeks.

Sanjay Mehrotra, Micron chief executive, said: "This is a historic moment for semiconductor manufacturing in the US.

"Micron's leading edge memory is foundational to meeting the growing demands of AI and we're proud to be making significant memory manufacturing investments in the US."

The Boise plant is already under construction, with production due to start in 2026. The New York factories are currently scheduled to come online in 2028 and 2029.