The Commerce Department announced today that it has awarded Micron Technology up to $6.165 billion in direct funding under the CHIPS and Science Act to build leading-edge memory semiconductors in the United States.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.
The finalized award for Micron follows the previously signed preliminary agreement, which the Commerce Department announced in April.
“Today, thanks to our historic legislation, the Department of Commerce has finalized one of its largest awards to date with Micron Technology, the only U.S.-based manufacturer of memory chips,” Vice President Kamala Harris said in a statement. “These investments will help the U.S. grow its share of advanced memory manufacturing from nearly 0% today to 10% over the next decade.”
“Our administration knows these landmark announcements are more than investments; they are catalysts for sustained economic growth,” Harris added.
The funding deal with Idaho-based Micron will support the construction of two semiconductor factories – also known as fabs – in Clay, N.Y., and in Boise, Idaho. Micron is committing $50 billion in private investment by 2030, with a total investment of up to $125 billion across both states over the next two decades.
The finalized deal follows a recent flurry of CHIPS investments from the Biden administration before President-elect Donald Trump – who has criticized the program in recent weeks – takes office in January.
Additionally, the Commerce Department announced it has signed another preliminary agreement with Micron for up to $275 million in proposed funding to expand and modernize its facility in Manassas, Va.
“With this investment in Micron, we are delivering on one of the core objectives of the CHIPS program – onshoring the development and production of the most advanced memory semiconductor technology, which is crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security,” Secretary of Commerce Gina Raimondo said.
Other CHIPS Awards in the Works
In addition to the Micron deal, the Commerce Department also announced three separate preliminary agreements on Friday under the CHIPS and Science Act to provide up to $33 million in proposed direct funding to Coherent, up to $16 million in proposed direct funding to SkyWater Technology Foundry Inc., and up to $50 million in proposed direct funding to X-Fab.
The proposed investment in Coherent would support the expansion and modernization of the company’s existing 700,000-square-foot facility in Sherman, Texas. The increased production of Coherent’s indium phosphide devices would create approximately 70 jobs.
The proposed investment in SkyWater would support the modernization of its existing facility in Bloomington, Minn. The funding would upgrade the facility’s cleanroom and IT systems, while increasing the overall production capacity of 90nm and 130nm wafers by approximately 30 percent. The investment is also expected to create 70 jobs.
The proposed investment in X-Fab would support the modernization and expansion of its existing silicon carbide (SiC) fab in Lubbock, Texas – the only high-volume SiC foundry in the United States. The proposed investment would create an estimated 150 jobs.
“[These] three semiconductor announcements recognize that America’s innovative edge is rooted in communities like Sherman and Lubbock, Texas, and Bloomington, Minnesota. The President and Vice President’s CHIPS & Science Act is creating jobs, supporting small businesses, and securing the resilience of our supply chains all throughout the United States,” said National Economic Advisor Lael Brainard.
