Democratic U.S. Senate Majority Leader Chuck Schumer announced on Thursday that Micron Technology, a leading memory chip manufacturer, is slated to receive a substantial $6.1 billion funding boost from the U.S. Commerce Department. This funding is earmarked to support domestic chip plant projects, in alignment with the CHIPS & Science law.
The grant, though pending, is expected to bolster chipmaking facilities in New York and Idaho. Schumer emphasized that this investment marks a pivotal moment, stating, “This monumental and historic federal investment will power and propel Micron to bring its transformative $100+ billion four-fab project in central New York to life, creating an estimated 50,000 jobs.”
Micron’s ambitious plans include the construction of a complex of chip facilities in New York over the next two decades, underscoring the company’s commitment to domestic semiconductor production.
This move comes as the United States aims to strengthen its chip output and reduce dependence on countries like China and Taiwan. The Biden administration’s recent announcements of Chips Act awards reflect this strategic priority.
According to the Semiconductor Industry Association (SIA), the United States’ share of global semiconductor production capacity has dwindled from 37% in 1990 to 12% in 2020, highlighting the urgent need for domestic investment in chip manufacturing.
Lawmakers have voiced concerns over over-reliance on chips manufactured in Taiwan by companies like TSMC, especially in light of China’s territorial claims over the island. To address these concerns, Taiwan’s TSMC secured $6.6 billion in April to expand its U.S. manufacturing, while Intel received $8.5 billion in funding last month.
Adding to this momentum, Samsung was awarded $6.4 billion this week to ramp up production in Texas. The industry’s assistance under the landmark Chips Act totals $52.6 billion, aiming to revitalize domestic semiconductor manufacturing.
Despite receiving over $70 billion in funding requests, the Commerce Department plans to allocate $28 billion for government subsidies to advance chip manufacturing. Additionally, the department has the authority to provide $75 billion in loans.
Governor Kathy Hochul of New York hailed this development as the largest private investment in American history, signaling significant economic growth prospects for Central New York.
