The US Department of Commerce has awarded Micron Technology US$6.165 billion to expand memory chip production in New York and Idaho, creating 20,000 jobs. The chipmaker also secured US$275 million to modernize its Virginia facility, strengthening domestic supply chain resilience.
The Commerce Department awarded up to US$6.165 billion in direct funding on December 10, 2024, under the CHIPS Incentives Program for commercial fabrication facilities. The funding will support Micron's planned US$100 billion investment in New York and US$25 billion in Idaho. The plan aims to create 20,000 jobs and boost the US share of advanced memory manufacturing from under 2% to around 10% by 2035. The disbursement of the funds will be tied to Micron's progress on project milestones.
These investments are expected to enhance US economic resilience by establishing a steady domestic supply of cutting-edge DRAM chips, essential for advanced technologies, including PCs, high-performance computing, automotive applications, and artificial intelligence. These chips power Micron's HBM products, which the company considers critical to enabling next-generation AI models. Micron has committed to spend US$50 billion by the end of the decade to expand the development and production of its most advanced semiconductor memory technology in New York and Idaho.
Separately, the Department of Commerce signed a non-binding Preliminary Memorandum of Terms (PMT) with Micron for up to US$275 million in proposed funding to modernize its Manassas, Virginia, facility. This US$2 billion project aims to onshore Micron's 1-alpha technology. The modernization will substantially increase wafer output and create over 400 manufacturing jobs and up to 2,700 community jobs at its peak. The legacy DRAM chips produced in Manassas will support critical automotive and industrial markets, further bolstering US supply chain resilience.
US Secretary of Commerce Gina Raimondo emphasized the strategic importance of the initiative: "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. With this investment in Micron, we are delivering on the CHIPS program's core objectives: onshoring advanced memory semiconductor technology to safeguard our leadership in AI and protect our economic and national security."
Commenting on the announcement, Micron president and CEO Sanjay Mehrotra said: "As the only US-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the US, strengthening the country's technology leadership and fostering advanced innovation. These investments, supported by the bipartisan CHIPS Act, will drive economic growth and ensure the US remains at the forefront of technological advancements."
The company also acknowledged contributions from federal, state, and local leaders, including New York Governor Kathy Hochul, Senate Majority Leader Chuck Schumer, and Virginia Governor Glenn Youngkin, for facilitating the company's plans and securing vital investment tax credits.
