How Will Micron Technology Spend Its CHIPS Act Funding?

The Biden Administration has selected Micron Technology as the latest CHIPS Act recipient. 

The memory chip maker will get $6.1 billion in funding as part of the broad effort to bolster the United States semiconductor industry. The Idaho-based manufacturer is also getting a $7.5 billion federal loan. 

A significant portion will go toward the planned megafab factory in Clay, New York. 

The funding is one of the largest federal investments in Central New York’s history, and it will barely put a dent in the estimated cost of $100 billion. 

Micron announced its plans to build the massive factory in 2022. Officials hope to open the facility by 2028. The project is expected to cost up to $100 billion over 20-plus years. The initial phase alone requires a $20 billion investment. 

The factory will generate nearly 50,000 jobs in New York, according to officials, with 9,000 high paying positions within Micron and more than 40,000 through ancillary suppliers, contractors, and other community roles. 

The plant will house four 600,000 square foot cleanrooms, totaling 2.4 million square feet. That’s the size of 40 football fields. During a visit to Syracuse, President Biden positioned the development as a “comeback story” for upstate New York. 

The other CHIPS Act investments include:

  • A $20 billion contribution toward two new Intel fabs in Ohio focusing on 10nm and 7nm process technologies
  • $17 billion to help Samsung Electronics build a plant in Taylor, Texas for producing state-of-the-art 5nm chips for high-performance computing, artificial intelligence, and advanced mobile applications 
  • $12 billion to support the Taiwan Semiconductor Manufacturing Company’s first US production facility, which will produce 5nm chips
  • $1.5 billion going toward GlobalFoundries expanding existing facilities and building a fabrication plant in Malta, New York

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