Micron Technology is receiving up to $6.1 billion from the federal government to build three chip-making facilities, the latest award from legislation meant to boost chip production in the U.S. The government grant will fuel up to $125 billion in investment by Micron in New York and Idaho over the next 20 years, U.S. officials said Thursday. About $50 billion of that will come by 2030. Micron plans to build a “megafab,” or a collection of massive chip-producing facilities, in Clay, N.Y. The government funding will go toward building the first two of four facilities that are expected to have chip-producing space equal to almost 40 football fields. The company initially announced its plans for the New York facility in 2022. The company said at the time it expected the megafab to be the largest semiconductor fabrication facility in U.S. history. Micron also plans to use the grant to construct another fab, or fabrication facility, in Boise, Idaho, where Micron is based. That plant, in the same place as the company’s existing research facility, will be a high-volume manufacturing fab. Officials said the total investment by Micron was expected to create more than 70,000 jobs, including 20,000 direct manufacturing and construction jobs. The preliminary funding deal between Micron and the Commerce Department is the fifth major tranche of funding to a chip-making giant in the last several weeks under the 2022 Chips Act. The $53 billion Chips Act follows years of semiconductor manufacturing shifting overseas, which the Biden administration has framed as an economic and national security problem. The U.S. now produces just over 10% of semiconductors. The administration recently announced $6.4 billion for Samsung, which is looking to expand its manufacturing operations in Texas. Intel was awarded $8.5 billion, the largest grant announced to date under the law, to increase production in four states.
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