Wednesday, August 23rd 2023

Micron Claims it Needs Government Funding to Develop New Fabs

According to Reuters, Micron has followed in Intel's footsteps and asked the US Government to pitch in to help the company build new fabs in Boise, Idaho and Clay, New York. The funds would be part of the CHIPS Act, which means Intel is going to have to fight for its share, since Pat Gelsinger is expecting Intel to get a bigger share than other companies. However, as Micron is also a US company, Intel will have less clout to convince politicians to favour it over the competition for the funds. The CHIPS Act has earmarked US$52.7 billion in subsidiaries for semiconductor production and research in the US.

Last September, Micron announced that it would be investing some US$15 billion in new facilities at its Idaho location by 2032, which the company claimed would create some 17,000 jobs by 2030 in the area. In October, the company went on to state that it would invest up to US$100 billion for the next 20 years in what Micron says will be the largest semiconductor production plant in the world at its Clay, New York location. However, now it looks like at least a sizable chunk of that money will come from the US taxpayers, rather than from Micron's own pocket. Time will tell how much each of the CHIPS Act applications will get, as if enough companies apply, the money might not go quite as far as some of these companies have hoped for.
Source: Reuters
Add your own comment

28 Comments on Micron Claims it Needs Government Funding to Develop New Fabs

#26
A&P211
R-T-BYeah despite efforts to cripple the USPS stateside it somehow survives without nearly any funding from congress and being forced to fund retirements literal decades into the future for employees (something no one else does, but for some reason, they must)

Not everything government need be inefficient. Our unkillable post office is evidence of that.
Its "run" by the government, but treated like a private business by the government but still has to be "run" by the government.
USPS wants to do so many things to make extra money but cant because the government wont give it permission.

I dont get it
Posted on Reply
#27
phanbuey
AssimilatorConsidering Intel and TSMC already got government handouts, don't see why Micron should be left out. /s

What governments should be doing is building their own state-owned semiconductor fabrication plants. Then instead of paying public money to private chipmakers to bribe the latter into deigning to build fabs, the government puts those funds into its own fabs, and the private chipmakers either invest their own funds to compete, or lose marketshare and profit to the state-owned company.

But of course the "free(dumb) market" crowd will claim the above is communism, because apparently rigidly sticking to an ideology that very obviously isn't working is preferable to doing what's objectively best for their state.
They are state owned, you just dont realize it.

Also communism isn't working anywhere even worse than the free market... so not sure what point you're trying to make here. I've lived through enough communism to know what im talking about.
Posted on Reply
#28
claes
I think it’s a real stretch to claim they are state-owned lol. If they were then why did they build fabs in countries besides the US, particularly in competitors markets and outright enemies of the US? Why did the Asian stock market crash almost destroy Micron, a supposedly nationalized, US business?

(also China and much of South America would like to have a word with you but off-topic)
Posted on Reply
Add your own comment
May 5th, 2025 12:58 EDT change timezone

New Forum Posts

Popular Reviews

Controversial News Posts