Department of Commerce Finalizes $6.1 B US Chip Subsidy for Micron Technology
The US government has finalized a $6.1 billion subsidy for Micron Technology. The Micron Technology US chip subsidy will help the memory chip manufacturer to construct several semiconductor facilities in the US. According to Reuters, the subsidy amount from the US Department of Commerce has not changed from the original amount announced in April 2024.
Large Award
The Micron semiconductor industry subsidy is among the largest awards given to chip manufacturers under the US Chips and Science Act.
“These investments will help the US grow its share of advanced memory manufacturing from nearly 0% today to 10% over the next decade,” the White House said in a statement on Micron Technology.
Micron Technology’s subsidy will finance projects in its New York and Idaho factories. Through the subsidy, the factories are expected to create up to 20,000 jobs by the year 2030.
Additional Funding
The US Commerce Department and Micron Technology have commenced discussions on additional investment. The two parties have already agreed on initial terms for an additional $275 million to expand Micron’s Virginia manufacturing factory. The company produces chips for the networking, automotive, and industrial markets in the plant.
According to the White House, extra funding to Micron Technology will enable the company to p “onshore a critical technology relied upon by our defense industry, automotive sector and national security community.”
Domestic Semiconductor Production
Chips Act funding is part of Biden’s administration to fuel domestic production of semiconductors and reduce reliance on Taiwan and China. This year alone, the US government has finalized several subsidies under the Chips Act.
Last month, the US Department of Commerce finalized a $6.6 billion award to Taiwan Semiconductor Manufacturing Company (TSMC). The department also finalized a $7.86 billion for US chip giant Intel. The US Department of Commerce reduced Intel’s federal chips grant from the initial $8.5 billion after the chip maker experienced challenges meeting stringent performance benchmarks for the funding.
In September 2024, the department awarded US chip manufacturer, Wolfspeed $750 million to expand its North Carolina and New York factories. The company manufactures wafers that are used in advanced computer chips in its North Carolina and New York factories.
