Key Takeaways
The Commerce Department said Tuesday that Micron Technology ( MU ) has been awarded up to $6.165 billion to make semiconductors in the U.S. as part of the CHIPS and Science Act of 2022 .
The agency said the money would support Micron ’s “two-decade vision” to invest approximately $100 billion in New York and $25 billion in Idaho for new factories and create about 20,000 new jobs. The Commerce Department also said Micron would receive the funding in increments based on the completion of certain milestones.
In addition, the department signed a non-binding agreement with the company to grant up to $275 million to expand and modernize Micron’s DRAM memory chip facility in Manassas, Virginia.
Grant To Fund Three New Memory-Chip Fabrication Plants
Micron Chief Executive Officer ( CEO ) Sanjay Mehrotra said that, as the only American-based manufacturer of memory chips, “Micron is uniquely positioned to bring leading-edge memory manufacturing to the U.S., strengthening the country’s technology leadership and fostering advanced innovation .”
The original grant was announced in April , and Tuesday’s statement followed due diligence conducted by Commerce officials. At that time, Micron explained that the money would go toward building one leading-edge memory manufacturing fabrication plant, to be co-located with the company’s existing research and development facility in Boise, Idaho, and for constructing two leading-edge memory fabrication plants in Clay, New York.
The news didn’t help Micron Technology Tuesday, which lost 4.5% and was trading at $98.21 this afternoon. Still, shares are up 15% so far this year.
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