US Proposes $6B Investment in Micron to Build Semiconductor Fabrication Plants

The U.S. government intends to invest $6.14 billion in Micron Technology through the CHIPS and Science Act to support the construction of two semiconductor fabrication plants in New York and one in Idaho.

On Thursday, the Department of Commerce and Micron signed a non-binding preliminary memorandum of terms specifying the government’s proposed funding, which will contribute to the company’s $125 million investment in the dynamic random-access memory fabs over the next 20 years.

Micron plans to shift 40 percent of its DRAM chip production to the new facilities to increase U.S. competitiveness in leading-edge semiconductor production, the Department of Commerce said.

According to Commerce Secretary Gina Raimondo, boosting domestic chip development and manufacturing is essential to maintaining economic and national security, noting how chips are critical to harnessing the power of artificial intelligence.

The planned fabs in New York and Idaho will have 600,000 sq ft of cleanrooms and create thousands of facility and construction jobs.

The proposed government investment includes $40 million in workforce funding to ensure Micron will hire highly skilled individuals necessary to build and operate the fabs.