Micron gets billions in grants to build new memory factories in US – Computer – News

Micron also receives billions in grants from the US government. The memory maker will receive more than $6 billion as it plans to invest in new chip factories. That money will mostly build new memory factories in New York and Idaho.

Micron signed on Thursday A preliminary agreement with the administration of US President Biden. Under that deal, the chipmaker will receive $6.14 billion in direct subsidies. Micron is allowed to take up to $7.50 billion in cheap loans from the US government.

The memory maker mainly invests its funding in building new memory factories. Micron previously announced plans to build two advanced tram plants in New York state. Both are 'megafabs' that will have nearly 58,000 square meters of clean room area.

Additionally, Micron is building a new tram plant in the state of Idaho. It will be built next to Micron's research and development facilities near Boise. Although the notification did not specify how many wafers the factories will produce monthly, the factory is designed for 'high volume production'.

In total, Micron will invest fifty billion dollars in the first three factories over the coming years. That could rise to $100 billion over the next two decades, the White House said Thursday. Production at Micron's Idaho plant is scheduled to begin in 2026, followed by New York plants in 2028 and 2029.

The U.S. government provides grant funding through the Chips and Science Act, which provides more than fifty billion dollars in subsidies to build chip factories in the United States. Due to rising geopolitical tensions between the US and China, the country wants to become more independent from Asia in the production of advanced chips.

Previously, Intel, DSMC, Global Foundries and Samsung already receive billions in grants under the American Chip and Science Act. All of these chipmakers will build new factories in the US. The previously announced grant amounts correspond to the amount Micron pledged on Thursday.