Micron Technology Inc. will spend up to $100 billion to build a semiconductor plant in Clay, New York, that will produce cutting-edge memory chips.
Micron announced the initiative this morning. The company stated that the upcoming semiconductor plant, or fab, will be the largest chip production facility ever built in the U.S. once construction is complete.
Boise, Idaho-based Micron is a major supplier of memory chips. The company makes flash and DRAM chips for a variety of systems ranging from data center servers to smart cars. Micron generated a $1.49 billion net profit on $6.64 billion in revenue last quarter.
The company said today that it will invest up to $100 billion over 20-plus years to build the planned New York memory fab. The initial tranche of $20 billion will be spent by the end of the decade, Micron said.
According to the company, construction preparations will begin next year at the site that is set to house the planned memory fab. The construction process itself is expected to start in 2024. Micron plans to gradually gear up chip production over the second half of the decade based on market demand for memory chips.
Eventually, Micron expects that the fab will have as many as four cleanrooms with 2.4 million square feet of combined space. A cleanroom is a section of a chip plant that contains semiconductor manufacturing equipment. According to Micron, its plant will be powered entirely by renewable energy sources.
The development is expected to create nearly 50,000 new jobs, including about 9,000 positions at Micron. The chipmaker will establish a $500 million fund to invest in community and workforce development with a focus on disadvantaged populations. Micron will invest $250 million in the fund, while another $250 million will be provided by New York’s Empire State Development organization as well as other local, state and national partners.
Micron’s planned $100 billion memory chip fab is made possible by anticipated federal grants and tax credits from the CHIPS and Science Act, which President Joe Biden signed into law Aug. 9. Additionally, New York will provide Micron with up to $5.5 billion in state tax credits over 20 years.
“I am grateful to President Biden and his Administration for making the CHIPS and Science Act a priority, to Senator Schumer and a bipartisan coalition in Congress for passing the legislation, and to Governor Hochul and County Executive McMahon for the local and state partnerships that made this investment possible,” said Micron President and Chief Executive Officer Sanjay Mehrotra.
Micron previously announced plans to build a new $15 billion chip fab on the site of its headquarters in Boise, Idaho. The fab will be co-located with Micron’s chip research and development center. The plant is expected to create more than 17,000 jobs, including 2,000 positions at Micron.
The company hasn’t yet detailed the manufacturing capacity of the upcoming fabs. However, Micron today announced plans to have its U.S. fabs account for 40% of its DRAM chip production within a decade. Micron generated revenues of $4.8 billion from DRAM chips in the three months through Sept. 1, which represented 72% of its total revenue during the quarter.
Fellow chipmaker Intel Corp. is also expanding its semiconductor production capacity in the U.S. The company earlier this year announced plans to build two new processor manufacturing plants in Ohio at a cost of more than $20 billion. At the time, Intel stated that it could invest up to $100 billion in Ohio over the next decade to build as many as eight chip fabs.
The company in parallel is expanding its existing network of chip production facilities in Arizona. In August, Intel inked a $30 billion deal with investment firm Brookfield Asset Management to add two chip fabs to its Arizona campus. Brookfield will provide 49% of the financing necessary to build the fabs.
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