Micron has secured $6.1 billion in direct funding from the CHIPS Act for DRAM production in Idaho and New York, US Commerce officials announced Tuesday. In doing so, Micron joins an elite group of global powerhouse companies getting final approval for multiple billions under the $52 billion program created in 2022.
Also, Commerce signed a preliminary deal with Micron for up to $275 million for expanding and modernizing its facility in Manassas, Virginia. In all, Micron told the government it expects to invest about $100 billion in New York, $25 billion in Idaho and $2 billion in Virginia in coming years.
A major goal of the bipartisan CHIPS Act was to secure domestic production of vital semiconductors, components and machines used in producing, testing and packaging chips. The final grants are made subject to contractual conditions for completed construction and other guardrails. For Micron, the Virginia modernization would onshore Micron’s 1-alpha technology and significantly increase monthly wafer output, Commerce said. Such technology improves bit density, power efficiency and performance. DRAM is considered vital for auto and industrial markets.
Commerce Secretary Gina Raimondo said advanced memory technology “is crucial for safeguarding our leadership on AI and protecting our economic and national security.”
Micron is the only US-based manufacturer of memory products, an industry heavily centered in Asian countries. “Micron is uniquely positioned to bring leading-edge memory manufacturing to the US,” said Micron CEO Sanjay Mehrotra in a statement.
Administrators of the CHIPS law have now dispersed more than $36 billion for various projects, as companies that secured preliminary agreements have rushed to secure final funding before the start of a new Congress and the Trump administration in January.
Micron’s $6.1 billion award includes $4.6 billion for the Clay, New York, project to support two fabs of four planned fabs, each with 600,000 square feet of cleanrooms. The remaining $1.5 billion will go for Micron in Boise, Idaho, to support development of a high-volume manufacturing fab with about 600,000 square feet of clean room space.
Intel recently was awarded four separate awards for projects in Arizona, Oregon, New Mexico and Ohio for a total of $7.8 billion. The largest of the four awards goes for the Chandler, Arizona, location for construction of two logic fabs and modernization of one existing fab for producing Intel 18A chips, which are designed with RibbonFET gate-all-around transistors. Intel is also undergoing a $10 billion internal cost-cutting program after laying off 15,000 workers in recent months and the departure of CEP Pat Gelsinger on Dec. 1.
TSMC got a final award of $6.6 billion from CHIPS Act for three leading-edge chip fabs in Phoenix. Global Foundries got $1.4 billion for construction of a new 300 mm fab facility in Malta, New York. The funds at GF will also support expansion of an existing facility where a strategic agreement has been reached with GM for a secure supply of needed semiconductors.
All CHIPS awards are tallied on the CHIPS for America website.