Micron Receives $6.1B in CHIPS Act Funding to Boost US Memory Manufacturing

[Nomad76]

The Biden-Harris Administration has given Micron Technology up to $6.165 billion in direct funds through the CHIPS Incentives Program to back the company's manufacturing growth. The money will allow Micron to execute its plan announced in October 2022 by investing about $100 billion into Clay, New York fab, and $25 billion into Idaho over 20 years aiming to boost the United States' advanced memory manufacturing from under 2% to around 10% by 2035. This large investment aims to make the U.S. economy stronger by creating a home supply of cutting-edge DRAM chips, moreover it is expected to create approximately 20,000 job across the U.S. Micron plans to spend about $50 billion before 2030 focusing on making more advanced memory semiconductor technology.

Also, the Department of Commerce has put pen to paper on a first draft of terms with Micron. This could lead to funding of up to $275 million to upgrade its Manassas, Virginia plant. The $2 billion investment project aims to bring Micron's 1-alpha technology back to U.S. The 1-alpha process was launched in 2021 and is used for the latest LPDDR5 DRAM chips. This would boost monthly wafer production and create over 400 factory jobs. At its busiest, the project could generate up to 2,700 jobs in the local area.



"Memory chips are foundational to all advanced technologies, and thanks to the bipartisan CHIPS and Science Act, America is rebuilding its capacity to produce these critical capabilities, said U.S. Secretary of Commerce Gina Raimondo. "With this investment in Micron, we are delivering on one of the core objectives of the CHIPS program - onshoring the development and production of the most advanced memory semiconductor technology, which is crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security."

"As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the U.S., strengthening the country's technology leadership and fostering advanced innovation," said Micron President and CEO Sanjay Mehrotra.

"Micron's investments in domestic semiconductor manufacturing capabilities, supported by the bipartisan CHIPS Act, will help drive economic growth and ensure that the U.S. remains at the forefront of technological advancements. We appreciate New York's Green CHIPS legislation and the local partnership with Micron to create a Community Investment Framework to revitalize central New York. Many federal, state and community leaders have played a pivotal role in the process, from the development of Micron's plans to finalizing essential investment tax credits. These include New York Governor Kathy Hochul, Senate Majority Leader Chuck Schumer, U.S. Senator Mark Warner, U.S. Senator Mike Crapo, U.S. Senator James Risch, Idaho Governor Brad Little, Virginia Governor Glenn Youngkin, Mayor Lauren McLean, and County Executive Ryan McMahon. Their contributions support Micron's continued industry leadership as we work to meet the growing demand for memory," added Micron President and CEO Sanjay Mehrotra.

View at TechPowerUp Main Site | Source

 

[bonehead123]

And at the pace the gov't moves, maybe by the time my kid's great grand-kids are born, they will see some of this money start to flow in

 

[SOAREVERSOR]

And at the pace the gov't moves, maybe by the time my kid's great grand-kids are born, they will see some of this money start to flow in

The money already started flowing the issue is conservatives, as always, want to gut it. That's how things work. The liberals approve it while the conservatives try to block it and then as soon as conservatives get back in power they cut it off and it stops flowing but the corporations and rich keep it. Conservatism baby!

Now pay no attention to being robbed and cry more about woke so we can rob you again!

 

[StimpsonJCat]

Now watch them piss this taxpayer money away...

With that kind of free money injection, they should be able to design and manufacture the very best memory in the world considering they already make reliable but mediocre chips... And it's not like it's actually difficult to design a memory chip, now they have no excuse.

The money already started flowing the issue is conservatives, as always, want to gut it. That's how things work. The liberals approve it while the conservatives try to block it and then as soon as conservatives get back in power they cut it off and it stops flowing but the corporations and rich keep it. Conservatism baby!

Now pay no attention to being robbed and cry more about woke so we can rob you again!

What's woke? amiright...

Giving billions upon billions of tax-payer money away to corrupt corporations who post billions in profit already, who will just piss this money away to management and shareholders when you have hundreds of thousands of homeless people, millions of your own citizens living in poverty, major infrastructure falling apart and thousands of people still without power, fuel and water after bad weather months ago should be a higher priority, shouldn't it?

This is called logic, not "conservatism".

 

[phubar]

Now watch them piss this taxpayer money away...

Micron is a rather typical large corporation: rather ruthless to their own employees and extremely bottom line focused but that is the norm. Micron hasn't shown any sign of stuffing subsidies into corporate pockets. They're breaking ground on new US factories with this money.

Manufacturing expansion

Our global investment in leading-edge memory manufacturing over the next decade, including potential fab expansion in the U.S., will help meet the memory demands of the fast-growing data economy, create new jobs and deliver technology leadership.

www.micron.com

If you have actual evidence of them grossly misspending CHIPS money post it. Otherwise you're just making baseless claims.

With that kind of free money injection, they should be able to design and manufacture the very best memory in the world considering they already make reliable but mediocre chips...

Costs for a new fab are around $35-43 billion.

Navigating the Costly Economics of Chip Making

Semiconductor fabs have become increasingly complex in recent years, making them more expensive to build. But the right combination of incentives and support can help companies bring down costs.

www.bcg.com

~$6 billion won't even cover half of the costs of 1 of them. More like around a quarter of the cost. Sure they probably got the land for free and there'll be tax breaks on top of this but you're very uninformed about how far this money can go.

They're also more or less competing with the South Korean govt. which massively funds Hynix and Samsung fabs + R&D. I think between the 2 of those companies they have like ~70% of the memory business sewed up because they've had to big to fail status for decades in South Korea (google chaebol) which lets them price down their products quite a bit.

Giving billions upon billions of tax-payer money away to corrupt corporations

Post some examples of this eeeeeextreme Micron specific corruption if you know so much about it.

From what I know of Micron they're rather typical corporation, which means they'll gladly do all kinds of skeevy barely within the letter of the law stuff if they think they can get away with it, but they're hardly on par with say the oil industry. Or weapons manufacturers. Or banks. Or pharmaceutical corps.

hundreds of thousands of homeless people, millions of your own citizens living in poverty, major infrastructure falling apart and thousands of people still without power, fuel and water after bad weather months ago should be a higher priority, shouldn't it? This is called logic, not "conservatism".

US Republicans and conservatives are totally against helping any of those homeless, building infrastructure (remember infrastructure "week" in the 1st Trump term? Nothing got done. EVER*) or millions of US citizens either though.

If anything they want them to die or suffer for the terrible sin of not being rich.

That is their logic.

Meanwhile everyone else who wants to have reasonably secure and consistent supply lines, since global supply chains can't be trusted to hold up in the event of large political or economic disruptions, is try to get as much chip production and packaging either set up in their country or with a nearby friendly country. That is why everyone who can is funding localized fabs and speciality industries to some extent. I'll be very expensive in the short term but long term it'll guarantee supply and lower prices.

No one wants a repeat of COVID19 price spikes if they can avoid it.

*https://www.cnn.com/2019/05/23/politics/donald-trump-infrastructure-week/index.html