US to Provide $6.1 Billion for Micron Technology Chip Plants
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WASHINGTON — The Biden administration has reached an agreement to provide $6.1 billion in government support for Micron Technology to produce advanced memory computer chips in New York and Idaho.
Senate Majority Leader Chuck Schumer (D-N.Y.), personally courted Micron to build what would ultimately be a set of four chip factories near Syracuse in the town of Clay. He noted in an April 17 interview that the announcement was a sign to voters about how Democrats were reviving the manufacturing sector.
“It will be the biggest memory chip plant in America,” said Schumer. “For the Syracuse area, this is the best thing that’s happened probably since the Erie Canal.”
The comparison to the 1825 infrastructure project that connected the Great Lakes to the Atlantic Ocean is audacious, but it gets at the possible magnitude of the economic impact as well as the national security stakes in an increasingly digital world.
Big news: Micron is set to receive over $6 billion from our CHIPS & Science Law.
This monumental and historic federal investment will power and propel Micron to bring its mega-fab project in Central NY to life, creating 50,000 good-paying jobs.https://t.co/Y5Fr1ZEeqU — Chuck Schumer (@SenSchumer) April 18, 2024
Including the government support, Micron plans to invest $100 billion in upstate New York over the next two decades. The investment would lead to an estimated 9,000 direct jobs and 40,000 construction jobs. Micron has also announced plans for a $15 billion memory chip plant in its hometown of Boise, Idaho.
The funding comes from the 2022 CHIPS and Science Act, which is set to provide government support for new and expanded facilities being developed by Intel, TSMC, Samsung and Global Foundries, among other chip companies.
The law included $52 billion to support the domestic semiconductor industry, reducing the risk that the chip shortages experienced amid the pandemic could hurt the U.S. economy and national security.
The Democratic administration has set a goal for 20% of the world’s advanced chips to be made in the United States and has restricted the flow of chips into China.
A senior Biden administration official, insisting on anonymity to discuss the deal before its official announcement, confirmed the agreement with Micron.
President Joe Biden discussed in Pittsburgh on April 17 the importance of computer chips that power everything from weapons to artificial intelligence to household appliances such as refrigerators.
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