Chip manufacturer Micron Technology will receive more than $6 billion in federal funding to expand production at its facilities in Idaho and New York state, federal officials announced.
Funding from the CHIPS Incentives Program
The U.S. Department of Commerce allocated the funding under the CHIPS Incentives Program — specifically, a provision tied to commercial fabrication facilities. The program is funded by a sweeping 2022 law designed to encourage domestic manufacturing of semiconductors and other advanced electronic components.
According to agency officials, Micron will receive the funds based on its completion of certain project milestones.
The department originally announced the proposed funding earlier this year when it signed a preliminary "memorandum of terms” agreement with Micron.
Projects Expected to Come in at $125B
The announcement, officials said, helps support the “first step” of Micron’s plans to invest $25 billion in Idaho and $100 billion in New York state over the next 20 years.
Those projects are expected to create some 20,000 jobs overall and increase the U.S.’s share of global advanced memory production from less than 2% up to 10% by 2035.
Micron anticipates that around $50 billion will be pending on the projects by 2030.
A Domestic Source of DRAM Chips
Commerce Department officials said that the funding would help provide a reliable, U.S.-made source of DRAM chips, which are used in personal computers, wireless communications, and a wide range of industrial applications. The chips are also used in Micron’s High-Bandwidth Memory to enable new artificial intelligence models.
Separate Agreement to Help Fund Virginia Expansion
The department also announced that it has signed a new agreement with Micron for $275 million in federal funding to help expand its facility in suburban Washington, D.C. That project’s total costs were estimated at $2 billion across “the next several years.”
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