Biden in NY to Boost US Chip Manufacturing with Micron Deal

President Joe Biden will be visiting New York to showcase the government’s support for bringing chip manufacturing back to the United States. The Commerce Department has announced a preliminary agreement with Micron, an American memory chipmaker, where the company will receive over $6 billion in government funding through the CHIPS and Science Act. The legislation was signed into law by President Biden in 2022. In addition to the grant, Micron will also be eligible for up to $7.5 billion in loans to boost domestic chip production.

Senate Majority Leader Chuck Schumer praised the deal, expressing optimism for the “future” of Syracuse, New York. The company plans to use the government incentive to build two facilities in New York and one in Idaho, with a projected $50 billion in private investment by 2030. Micron has committed to investing up to $125 billion across both states over the next two decades, marking the largest private sector investment in the history of New York and Idaho.

According to Lael Brainard, director of the White House National Economic Council, the investment represents a significant shift in U.S. semiconductor leadership. She emphasized the vulnerability of the United States to business disruptions and supply shortages, as evidenced during the COVID-19 pandemic. The CHIPS and Science Act aims to reduce the country’s reliance on imported chips by providing subsidies for semiconductor plant construction. Micron is the seventh company to receive incentives under the act, and the government has provided a total of $29 billion in grants, which is expected to generate $348 billion in private sector investment.

The construction of Micron’s project in Idaho is currently underway and is expected to begin operations in 2026. The first factory in New York is projected to be operational in 2028, with the second following in 2029. The investment is anticipated to create over 20,000 construction and manufacturing jobs, as well as many indirect jobs, according to the White House.

Written by Staff Reports

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