Micron Set to Receive $6.1B in CHIPS Act Funding to Build Plants in New York, Idaho

Semiconductor manufacturing company Micron Technology (MU) is set to receive $6.1 billion in funding from the U.S. government to build three chip facilities, in the latest award from the Biden administration aimed at boosting the production of semiconductors domestically.

Micron will get the money as part of the CHIPS and Science Act to build chip fabrication plants in New York and Idaho, the Biden administration said Thursday. The White House said the investments across New York and Idaho would create over 70,000 jobs.

Micron first announced plans to build the Clay, N.Y., “megafab” complex in 2022, and said then it would be the largest chip fabrication facility in U.S. history. The funding will also support the development of a high-volume manufacturing fab within Micron’s existing facility in Boise, Idaho.  

Micron’s projects will “bring back leading-edge memory manufacturing to the United States for the first time in over 20 years,” said the White House in a statement.

Memory chips store data and programs on computers and data storage devices.

The Biden administration has been doling out billions of dollars of funding and loans in recent months to expand the manufacturing of advanced chips at home. The largest recipient so far has been Intel (INTC), which is due to report quarterly results after the bell and last month received $8.5 billion to support the construction and expansion of facilities in Arizona, Ohio, New Mexico, and Oregon. 

Other beneficiaries of the CHIPS Act include Samsung, which received $6.4 billion this month to expand its manufacturing facilities in Texas, BAE Systems (BAESY), Microchip Technology (MCHP), and GlobalFoundries (GFS).