The US Commerce Department (USCD) has finalised an almost $6.2bn government subsidy for Micron Technology, to enhance semiconductor production in New York and Idaho.
This funding supports Micron’s long-term plan to invest approximately $100bn in New York and another $25bn in Idaho.
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It also marks one of the largest government awards made to chip companies under the $52.7bn 2022 CHIPS and Science Act, reported Reuters.
The new funding includes awards of $4.6bn for New York and $1.5bn for Idaho, consistent with the amount announced in April.
Additionally, the department has reached a preliminary agreement to award Micron up to $275m in proposed funding, in order to expand and modernise its facility in Manassas, Virginia, and to boost its wafer production with advanced technology.
The department stated that Micron’s investments will create in the region of 20,000 jobs which will help the US increase its share of advanced memory chip manufacturing from less than 2% to approximately 10% by 2035.
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By GlobalDataMicron is developing a 1,400-acre mega campus in central New York to produce dynamic random-access memory (DRAM) chips. DRAM chips are essential components in personal computing, cars, industrial operations, wireless communications, and artificial intelligence.
Micron’s high-bandwidth memory is crucial for enabling new AI models, according to the department.
Micron chief executive officer Sanjay Mehrotra said that the award “will help drive economic growth and ensure that the US remains at the forefront of technological advancements.”
The White House highlighted that the investments will aid “onshore a critical technology relied upon by our defence industry, automotive sector, and national security community.”
President Joe Biden’s administration has finalised a series of subsidies, including a $7.86bn award for Intel, $6.6bn for Taiwan Semiconductor Manufacturing’s US unit, and $1.5bn for GlobalFoundries.
These final awards come just weeks before President-elect Donald Trump, who has criticised the programme, takes office.
