Micron Receives $6.1 Billion CHIPS Act Grant For Semiconductor Onshoring; To Support Three New Fabs In Idaho And New York

Micron Technology will receive up to $6.14 billion in direct funding under the CHIPS and Science Act, as the Joe Biden administration ramps up its effort to onshore development and production of the most advanced memory semiconductor technology.

US President Joe Biden travelled to Syracuse, New York, on Thursday (25 April) and made the announcement regarding the preliminary memorandum of terms (PMT) signed by the Department of Commerce with memory chip maker Micron.

In addition to the announced $6.1 billion in grants, workforce grants to support Micron's efforts to build a vibrant talent pipeline are also being finalised. 

These grants will support the construction of a cutting-edge memory manufacturing facility in Boise, Idaho, and two more in Clay, New York.

Micron initiated construction on its Boise fab in October 2023. This high-volume manufacturing (HVM) plant is specifically tailored for the production of cutting-edge DRAM chips and will be co-located with Micron’s R&D centre to enhance operational efficiency.

Anticipated to be fully operational by 2025, initial DRAM output is projected to begin in 2026, gradually scaling up in line with market demand over the second half of the decade.

In New York, federal funding will aid in building the first two fabs of a planned our fab “megafab” focused on leading-edge DRAM chip production. Essential preliminary measures like design, field studies, and permitting applications, including compliance with the National Environmental Policy Act (NEPA), are currently underway.

Construction of the first fab is scheduled to commence in 2025, with operations starting in 2028 and expanding gradually according to market requirements over the subsequent decade.

The two projects, as planned, will represent the single largest private investments ever made in the states of Idaho and New York, with an estimated creation of 75,000 domestic jobs over the next 20 years.

Supported by CHIPS Act grants, Micron intends to channel around $50 billion into gross capex through 2030, marking the resurgence of cutting-edge memory manufacturing in the US for the first time in over 20 years.

Micron's Idaho fab and two New York fabs are projected to play a pivotal role in bolstering the US' share of advanced memory manufacturing from under 2 per cent today to roughly 10 per cent by 2035.