US President Joe Biden’s administration yesterday finalized up to US$6.2 billion in funding for Micron Technology Inc, firming up a deal to boost domestic semiconductor production before Donald Trump returns to the White House.
The Biden administration has been working to green-light agreements with firms in the chipmaking supply chain over recent months, seeking to cement parts of his legacy before the government administration changes.
Once a deal is finalized, funds can start heading to companies when they hit certain milestones.
Photo: Qilai Shen, Bloomberg
The Micron investment helps to bring development and production of advanced memory semiconductor technology to US shores, US Secretary of Commerce Gina Raimondo said.
This “is crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security,” she added in a statement.
The United States has been trying to reduce its dependence on China and other countries for semiconductors.
The latest funding comes under the CHIPS and Science Act, a major law passed during Biden’s term aimed at strengthening the US semiconductor industry.
The Micron deal in particular supports the company’s two-decade plan to invest some US$100 billion in New York and US$25 billion in Idaho, the US Department of Commerce said.
This should create some 20,000 jobs and “help the US grow its share of advanced memory manufacturing from less than two percent today to approximately 10 percent by 2035,” the department added.
Apart from the efforts in New York and Idaho, the commerce department also signed a preliminary agreement with Micron for up to US$275 million in proposed funding to expand and modernize its facility in Virginia.
“As the only US-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the US,” Micron president Sanjay Mehrotra said in a statement.
The US used to make nearly 40 percent of the world’s chips but this proportion is now around 10 percent, with none being the most advanced chips.
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