Micron to invest $40 bn on US domestic chip manufacturing

By Ayushi Garg  | Date: August 11, 2022

Micron to invest $40 bn on US domestic chip manufacturing

Sanjay Mehrotra, Micron President and CEO, who will be joining Biden at the White House for the signing of the CHIPS and Science Act, stated that this legislation is an essential step toward solidifying American semiconductor control in near future.   

Micron, an American semiconductor firm, has reportedly announced its investment plan of $40 billion on domestic chip production by capitalizing grants and credits from the new legislation that President Biden will sign on Tuesday.

Sanjay Mehrotra, Micron President and CEO, who will ink CHIPS and Science Act with Biden at the White house, called the legislation an essential stride toward strengthening American semiconductor supremacy for decades to come.

The production and transportation hindrances due to the pandemic has affected the availability of computer chips globally which has posed a significant threat to the economic activity.

The White House noted that GlobalFoundries and Qualcomm have also announced a new venture that includes an investment of around $4.2 billion to produce chips as an expansion plan of GlobalFoundries’ facility in upstate New York, after it hailed the Micron announcement.

The White House stated that the law will safeguard the United States advances and maintains scientific and technological edge. It provides tens of billions of dollars in tax credits to offer incentives for investment and funding for R&D.

Micron is expecting the production to begin in the second half of the decade and the subsequent investment will ensure supply chain resilience and US national security amid the rising demand for memory.

Moreover, the investment made towards US production stands as a part of the company’s global investment strategy of $150 billion in research & development and manufacturing over the coming years.

Micron has most of the operations in Asian countries like Singapore, Japan, and Taiwan with lower price but has plants in Idaho, Boise, and Northern Virginia. The legislation will facilitate the company to expand domestically and generate around 40,000 new job opportunities.

Source credit: https://auto.economictimes.indiatimes.com/news/auto-components/micron-plans-to-invest-40-bn-on-us-chip-manufacturing/93467516

About Author

Ayushi Garg     ibmag.com

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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