Micron Technology, Inc. (Nasdaq: MU), one of the world’s largest
semiconductor companies and the only U.S.-based manufacturer of
memory, and the Biden-Harris Administration today announced that
they have signed a non-binding Preliminary Memorandum of Terms
(PMT) for $6.1 billion in funding under the CHIPS and Science Act
to support planned leading-edge memory manufacturing in Idaho and
New York.
The CHIPS and Science Act grants of $6.1 billion will support
Micron’s plans to invest approximately $50 billion in gross capex
for U.S. domestic leading-edge memory manufacturing through 2030.
These grants and additional state and local incentives will support
the construction of one leading-edge memory manufacturing fab to be
co-located with the company’s existing leading-edge R&D
facility in Boise, Idaho and the construction of two leading-edge
memory fabs in Clay, New York.
The investments announced today represent the first step toward
Micron’s vision of both a leading-edge R&D and manufacturing
center in Boise, Idaho and a four-fab manufacturing complex in
Clay, New York to be built over the next 20-plus years with
potential investment totaling up to $125 billion. These investments
will support Micron’s objective to grow its memory bit supply in
line with long-term industry bit demand growth. Micron retains
flexibility under the PMT to remain responsive to market conditions
over time. In addition to the announced $6.1 billion in grants,
workforce grants to support Micron's efforts to build a vibrant
talent pipeline are also being finalized.
In addition to the CHIPS grants, Micron expects to benefit from
the U.S. Treasury Department’s Investment Tax Credit, which
provides a credit of 25% for qualified capital investments. The
state of New York has made up to $5.5 billion available in
incentives over the life of the project, comprised of a 5% New York
investment tax credit on qualified capital investments and 7.5% of
eligible non-construction labor costs. Micron and the state of New
York also established the Green CHIPS Community Investment Fund to
support community and workforce development in the region. The
company will also benefit from an incentive package in the state of
Idaho, including reduced state taxes related to the project and
substantial investments in semiconductor workforce training
programs.
These federal and state incentives, combined with projected
power cost advantages, along with R&D and manufacturing
co-location synergies, enable Micron to achieve cost-competitive,
leading-edge memory manufacturing in the U.S.
Micron’s planned state-of-the-art semiconductor manufacturing
facilities are expected to create approximately 75,000 domestic
jobs over the next 20-plus years and strengthen U.S. economic and
national security, furthering American innovation and competition
for years to come. In Idaho, this includes 2,000 Micron jobs, 4,500
construction jobs and 15,000 indirect jobs. In New York, this
includes 9,000 Micron jobs, 4,500 construction jobs and 40,000
indirect jobs. Micron’s plans will help to bolster the economies
and quality of life in both Idaho and New York. The two projects,
as planned, will represent the single largest private investments
ever made in the states of Idaho and New York.
“This is a historic moment for semiconductor manufacturing in
the U.S.,” said Micron President and CEO Sanjay Mehrotra. “Micron’s
leading-edge memory is foundational to meeting the growing demands
of artificial intelligence, and we are proud to be making
significant memory manufacturing investments in the U.S., which
will create many high-tech jobs. We appreciate the foresight of
U.S. President Joe Biden, U.S. Secretary of Commerce Gina Raimondo,
U.S. Senate Majority Leader Chuck Schumer and the bipartisan
delegation in Congress that supported the CHIPS and Science Act.
Their steadfast focus championing these strategic investments will
ensure U.S. semiconductor competitiveness for generations to
come.”
“Leading-edge memory chips are foundational to all advanced
technologies, and thanks to President Biden’s leadership, America
is rebuilding its capacity to produce these critical capabilities
for the first time in almost two decades,” said Secretary Raimondo.
“With this proposed investment, we are working to deliver on one of
the core objectives of President Biden’s 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. With these proposed investments, coupled
with Micron’s historic private investment of up to $125 billion in
New York and Idaho over the next 20 years, President Biden is
working to revitalize U.S. technological leadership and creating
tens of thousands of good-paying jobs.”
“This monumental and historic federal investment will power
Micron to bring to life its transformative $100+ billion microchip
mega-fab project in Central New York, creating an estimated 50,000
good-paying jobs and rebuild the Upstate New York economy one
microchip at a time. This project is a rebirth, a dramatic turning
point for Upstate New York, and will reverse decades of lost
manufacturing jobs and make the region a global epicenter for
cutting-edge microchip manufacturing,” said Senator Schumer.
“Central New York will be the beating heart of America’s most
advanced memory chip production and the comeback of American
manufacturing. Without the federal incentives funded by the CHIPS
& Science Law I crafted and led to passage, Micron’s mammoth
project would not be happening. I wrote the CHIPS & Science Law
with Upstate New York – and investments like Micron’s – as my north
star, and it is exciting and wonderful that this vision is becoming
a reality.”
Micron is also appreciative of New York Governor Kathy Hochul
who championed the Green CHIPS legislation and partnered with
Micron to create the Community Investment Framework to revitalize
central New York. Additional federal, state and local leaders have
played a pivotal role in the development of Micron’s plans
including, U.S. Senator Kirsten Gillibrand, U.S. Senator Mike
Crapo, U.S. Senator James Risch, Idaho Governor Brad Little, Boise
Mayor Lauren McLean and Onondaga County Executive Ryan McMahon.
Establishing leading-edge memory manufacturing in the
U.S. will propel supply chain resiliency.
Micron is the only company to produce memory in the U.S., the
only American company capable of developing the most advanced
memory and the only company that is now working to bring
leading-edge memory manufacturing to the U.S. Micron’s Idaho fab
and two New York fabs are expected to help the U.S. grow its share
of advanced memory manufacturing from less than 2% today to
approximately 10% by calendar year 2035.
Micron will attract and build a semiconductor ecosystem that is
firmly anchored on U.S. soil through its planned Idaho and New York
investments and the support of suppliers in nearly all 50
states.
Micron’s manufacturing plans and commitment to workforce
development in Idaho and New York will help ensure U.S. economic
leadership.
Micron initiated construction on its Boise fab in October of
calendar year 2023. The fab will be co-located with Micron’s
world-class R&D center to enhance operational efficiency,
accelerate technology deployment and improve time to market for
leading-edge products. The Idaho fab is expected to come online and
be operational in calendar year 2025, with DRAM output starting in
calendar year 2026 and ramping in line with market demand over the
second half of the decade.
In New York, preliminary design, field studies and permitting
applications, including NEPA, are underway for the project.
Construction of the first fab is expected to begin in calendar year
2025 and to come online and contribute to output in calendar year
2028, ramping in line with market demand over the next decade.
Micron’s planned co-location of R&D and manufacturing in
Idaho and high-volume manufacturing in New York will help ensure
U.S. leadership in memory development and manufacturing,
underpinning a national supply chain and R&D ecosystem.
To meet the needs of an expanding semiconductor industry in the
U.S., Micron is focused on developing the next-generation workforce
and enriching communities with historic commitments across Idaho
and New York. This includes K-12 education programs and curriculum
development, university partnerships and community-based
investments. These initiatives will be pivotal in building a strong
semiconductor talent pipeline that can support Micron’s plans at
scale and long-term U.S. technology leadership and innovation.
“As the first Governor from Upstate New York in more than a
century, I knew we needed to revitalize the upstate economy and
transform New York State into a national leader in
semiconductor manufacturing and research. The combination of
federal funding and our Green CHIPS program is the formula for
success,” said Governor Hochul. “I spent months advocating for
Micron to come to New York and this megafab will be a game changer,
setting the stage for regional transformation. This is just the
beginning of what we'll accomplish together, but none of it would
be possible without the partnership of President Biden, Commerce
Secretary Raimondo, New York’s congressional delegation, the New
York State legislature and our local stakeholders.”
“Micron is already a leader for and from Idaho, but the latest
commitments and funding mean that Micron will be a national and
global leader for decades to come,” said Governor Little. “Micron
and the State of Idaho have a long-standing partnership, and I look
forward to our continued cooperation as we pursue a shared goal of
building opportunity for Idahoans through chip manufacturing.”
“Today marks the culmination of years of hard work and
unwavering commitment from our bi-partisan site attraction team to
develop the White Pine Commerce Park into the premier hub for
memory technology manufacturing in the world. New York is now on
the brink of an economic renaissance, and with Micron’s investment,
Onondaga County is leading the charge,” said County Executive
McMahon. “Micron’s CHIPS Act funding solidifies their partnership
with the people of Onondaga County, and I am thankful for the
partnership of President Biden and Sen. Schumer, who have put
Central New York at the center of the American high-tech
manufacturing revival. I look forward to our continued work with
Micron to transform our county and our region.”
“I’m thrilled that our own home-grown company, Micron, will
receive significant funding through the CHIPS & Science Act,
and I thank President Biden for his leadership and commitment to
growing American jobs and companies,” said Mayor McLean. “This
CHIPS investment makes possible the once in a lifetime investment
here in Boise and in Central New York. We look forward to the
continued progress Micron makes through these federal investments
in chip manufacturing, as Boise and Central New York become
national and global hubs for memory technology.”
In addition to the Idaho and New York projects, Micron has
submitted an application under the CHIPS program to the Department
of Commerce to modernize its Manassas, Virginia fab for the
production of long-lifecycle chips to support customer demand in
areas such as automotive, industrial, aerospace and defense.
Micron honors the rights of all team members to contribute to
decisions about their work, how it is performed and organizational
direction. Micron respects the rights of workers to form and join
trade unions of their own choosing, to bargain collectively and to
peacefully assemble as permitted under applicable local law. It is
the right of workers to share ideas and concerns with management,
free of fear of reprisal. Micron invests in a culture that creates
an inclusive, engaging and innovative experience for all team
members. This culture anchors in people and purpose - unlocking the
full potential of each individual and fueling future innovation and
growth.
The PMT provides that the award is subject to due diligence and
the negotiation and signing of a definitive agreement with the
Department of Commerce, and the disbursement of funds will be
conditioned upon the achievement of certain milestones and other
requirements. The additional terms of the agreement remain
confidential.
About Micron Technology, Inc.We are an industry
leader in innovative memory and storage solutions, transforming how
the world uses information to enrich life for all. With a
relentless focus on our customers, technology leadership and
manufacturing and operational excellence, Micron delivers a rich
portfolio of high-performance DRAM, NAND and NOR memory and storage
products through our Micron® and Crucial® brands. Every day, the
innovations that our people create fuel the data economy, enabling
advances in artificial intelligence and 5G applications that
unleash opportunities — from the data center to the intelligent
edge and across the client and mobile user experience. To learn
more about Micron Technology, Inc. (Nasdaq: MU), visit
micron.com.
© 2024 Micron Technology, Inc. All rights reserved. Information,
products, and/or specifications are subject to change without
notice. Micron, the Micron logo, and all other Micron trademarks
are the property of Micron Technology, Inc. All other trademarks
are the property of their respective owners.
Forward-Looking Statements
This press release contains forward-looking statements regarding
the development of manufacturing facilities, expected tax credits
and incentives, fab opening and output timing expectations,
expected market share and bit demand growth, and job creation and
community impact. These forward-looking statements are subject to a
number of risks and uncertainties that could cause actual results
to differ materially. Please refer to the documents the Company
files with the Securities and Exchange Commission, specifically its
most recent Form 10-K and Form 10-Q. These documents contain and
identify important factors that could cause the Company’s actual
results to differ materially from those contained in these
forward-looking statements. These certain factors can be found at
https://investors.micron.com/risk-factor. Although the Company
believes that the expectations reflected in the forward-looking
statements are reasonable, the Company cannot guarantee future
results, levels of activity, performance, or achievements. The
Company is under no duty to update any of the forward-looking
statements after the date of this press release to conform these
statements to actual results.
Micron Media Relations Contact
Erica Rodriguez Pompen
Micron Technology, Inc.
+1 (408) 834-1873
epompen@micron.com
Micron Investor Relations Contact
Satya Kumar
Micron Technology, Inc.
+1 (408) 450-6199
satyakumar@micron.com
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