Micron’s Subsidiaries Continue To Focus On Chip Manufacturing

(CTN News) – More than $13 billion in direct funding and loans are being offered by the US government to aid Micron in its efforts to increase domestic chip production, including plans to build a ‘megafab’ in New York.

Continuing its plans to increase domestic semiconductor production, the US has agreed to give Micron up to $6.14 billion in direct funding as part of its efforts to boost the country’s semiconductor production.

As part of the investment, two new facilities will be built in the US focusing on the manufacturing of chips, which is expected to result in more jobs. Micron has said that this support will lead to the company investing $50 billion in private investments by 2030 as a result of this support.

It is the US government’s attempt to support Micron’s plan to invest up to $125 billion across New York and Idaho over the next two decades, as the US manufacturer intends to build a “memory manufacturing ecosystem” in the U.S.

The government funding will be used for the construction of the first two fabrication plants, or fabs, of the planned four-fab ‘megafab’ in New York, which will be focused on the manufacturing of DRAM (dynamic random-access memory) chips for the DRAM industry. The funding will also go towards building a high-volume manufacturing facility in Idaho as part of the project.

As a result of Micron’s plans, the US domestic semiconductor industry is expected to see a boost for the next few years and about 20,000 construction and facility jobs will be created.

As a result of the US Chips Act, the company has also been given the option to obtain loans of up to $7.5 billion. Meanwhile, the state of New York has also committed to providing $5.5 billion to Micron’s megafab plans to support its expansion plans.

According to the US secretary of commerce, Gina Raimondo, memory chips are the foundational component of “all advanced technologies”, and the latest investment is part of the Chips project – which aims to “onshore the development and production of the most advanced memory semiconductor technology”.

For the first time in almost two decades, America is rebuilding its capacity to produce these critical capabilities under the leadership of Raimondo.

Recent years have seen the US make a number of key investments that are aimed at strengthening its domestic production of advanced semiconductors.

Earlier this month, the US confirmed that it will provide Samsung with a non-binding loan of up to $6.4 billion to help the company invest more than $40 billion into semiconductor projects in Texas. It is worth noting that the US also provided billions of dollars in subsidies and loans to TSMC in order to increase semiconductor production.

In a recent announcement, the US Government announced that it would provide Intel with $8.5 billion to help boost the company’s domestic production.

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