Biden admin gives $6.1B to Micron Technology to help boost chip factories in New York
Joe Biden’s administration reached an agreement to dole out a staggering $6.1 billion in government support for semiconductor manufacturer Micron Technology to produce advanced computer memory chips in New York and Idaho.
Senate Majority Leader Chuck Schumer (D-NY) personally pursued US-based Micron to build what will ultimately be a set of four chip factories near Syracuse in the town of Clay, according to Fortune.
It will be the biggest memory chip plant in America, Schumer said, per Fortune. For the Syracuse area, this is the best thing thats happened probably since the Erie Canal.
Aside from the government support, Micron is expecting to invest $100 billion of its own over the next two decades in the upstate New York endeavor, which is set to create 9,000 factory jobs and 40,000 construction jobs.
Biden has touted Micron’s ambitious plans as “another win for America, and another massive new investment in America spurred by my economic plan.”
The 81-year-old Democratic president has also touted that his term has bolstered what he’s called a historic manufacturing boom,” and his administration has vowed for 20% of the worlds advanced chips to be made in the United States.
As part of the effort, the Biden administration has also restricted the flow of chips into China, which has emerged as a leader in semiconductor chip manufacturing.
He reiterated in Pittsburgh on Wednesday that he’s confident on getting tougher on China — especially when it comes to preventing the exportation of advanced technologies that could undermine our national security,” according to the Associated Press.
The world’s largest chip firm, Taiwan Semiconductor Manufacturing Company (TSMC) — whose clients include Apple, Intel and Nvidia — has factories across China, including in Nanjing and Shanghai.
Biden noted that he delivered a similar message to Chinese President Xi Jinping during previous conversations, telling him, Youll use them for all the wrong reasons, so youre not going to get those advanced computer chips.
The Biden administration’s multibillion-dollar funding for Micron — whose top corporate owners include Vanguard, which initially pushed environmental, social and governance (ESG) strategies but has since increasingly rejected the initiative — comes from the 2022 CHIPS and Science Act.
The law, passed by Biden in 2022, allows for investment tax credits that helps American manufacturing companies stay competitive in the global market, according to a White House fact sheet.
Immediately upon the CHIPS and Science Act’s approval, Micron announced a $40 billion investment into memory chip manufacturing, while tech rival Qualcomm partnered with semiconductor firm GlobalFoundries for a $4.2 billion investment in the industry.
Micron has also since announced plans for a $15 billion memory chip plant in its hometown of Boise, Idaho, Fortune reported.
The 2022 CHIPS and Science Act is also slated to allow additional government support to be handed out to facilities being developed by Intel, TSMC and Samsung, among other tech giants.
