This time, to back Micron’s memory chip production, Biden government finalises another funding of $6.2 billion to power a $125 billion investment, eyeing massive employment and US semicon industry revival.
On Tuesday, the Biden administration sanctioned a fund of almost $6.2 billion for Micron Technology under the CHIPS Act. This is set to back the company’s long-term plan, which includes investments of around $100 billion in New York and $25 billion in Idaho, as the US Commerce Department reported.
The funding is projected to create approximately 20,000 jobs and increase the US share of advanced memory manufacturing.
In addition to the New York and Idaho projects, the department has also signed a preliminary agreement to potentially provide up to $275 million in funding to expand and modernise Micron’s facility in Virginia. This will help ensure a stable supply of chips essential for the automotive and industrial sectors.
The Biden administration has been actively working on similar agreements in the semiconductor sector over the past months, seeking to cement these deals as part of Biden’s legacy before leaving office in January.
Once the agreement is officially in place, funds will be distributed to companies as they achieve milestones. According to Commerce Secretary Gina Raimondo, memory chips are integral to all advanced technologies. Micron is the only US-based manufacturer of those, so the company is positioned to lead this industry within the country.
Micron President Sanjay Mehrotra echoed this sentiment, stating that the company is well-placed to advance memory manufacturing in the U.S.
Raimondo also acknowledged that this investment is a significant step as the US is investing in domestic semiconductor production to reduce reliance on foreign sources, especially China, and maintain leadership in AI, economic, and national security.
The funding, part of the CHIPS and Science Act 2022, aims to revive the US semiconductor industry, whose global production share has fallen from 40% to 10%, with advanced chips now produced elsewhere.
