Micron secures $6.1 billion CHIPS incentives for US expansion
The US Department of Commerce is awarding Micron Technology up to USD 6.165 billion in CHIPS Act incentives to expand its DRAM production facilities in Idaho and New York.
Additionally, the Department of Commerce has signed a Preliminary Memorandum of Terms (PMT) for up to USD 275 million to support Micron’s expansion in Virginia.
The funding marks the initial phase of Micron’s USD 125 billion, two-decade vision to advance US semiconductor manufacturing. With plans to create 20,000 jobs across Idaho and New York, the initiative aims to increase America’s share of global advanced memory production from less than 2% today to 10% by 2035. Micron has committed to investing USD 50 billion in these projects by 2030.
Key projects in Idaho and New York
The CHIPS funding will enable Micron to expand its production of DRAM chips, critical components for AI, automotive, industrial, and wireless applications. The company’s High-Bandwidth Memory (HBM) technology, essential for next-generation AI models, will also benefit from this investment.
Micron’s advanced memory chips will be manufactured at its facilities in New York and Idaho, strengthening the domestic supply chain and bolstering U.S. economic resilience. The Department of Commerce will disburse the funding based on Micron achieving key project milestones. Micron’s plan is to invest USD 100 billion in its New York operation and USD 25 billion in Idaho.
Virginia facility expansion
In addition to the Idaho and New York projects, Micron plans to modernise its Manassas, Virginia facility with a USD 275 million CHIPS incentive agreement. The expected capital expenditure for the modernization will be USD 2 billion over the next several years. The proposed project would onshore Micron’s 1-alpha technology to its Manassas facility, significantly increasing monthly wafer output.
The Virginia expansion is expected to create over 400 manufacturing jobs.
“As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the U.S., strengthening the country’s technology leadership and fostering advanced innovation,” said Micron President and CEO Sanjay Mehrotra in a press release.
