Author: Britany Holland
The semiconductor company Micron recently announced its big plan to fund as much as $100 billion over the next two decades and probably more years to successfully build a massive computer chip factory complex in upstate New York. With the news, the company became another major semiconductor maker to invest in the United States.
It is no surprise that Micron officially became a huge investor in the United States because the initial reason why the company will fund that whopping amount of money is to achieve the largest semiconductor fabrication facility in the history of the United States. With that intention, the plan’s details make sense, such as opening nearly 50,000 New York jobs.
Undoubtedly, Micron’s announcement created a huge buzz and caught many people’s attention. If you share the same interest, keep reading to discover more.
More details of Micron’s pledge investment
Interestingly, Micron’s announcement comes after President Biden signed a bipartisan bill about providing lucrative new subsidies to companies producing microchips in the U.S. As for that, the semiconductor company will receive benefits from $5.5 billion in incentives which are from the New York State.
According to the statement of Micron CEO Sanjay Mehrotra, the fund for the construction of the chip factory will provide benefits beyond the semiconductor industry. There’s the intention to strengthen the U.S. technology leadership, including its national security and economy. Meanwhile, the expected results are better innovation and competitiveness in the coming decades.
The primary reason that seemed to motivate Micron’s commitment to building the chip factory is the passing of the CHIPS and Science Act of 2022, which provides $52 billion in grants and subsidies for companies. To be specific, the act is mainly passed to support companies in expanding computer chip factories. Of course, it has been a favorable move of the federal government to Micron.
As a matter of fact, the significance of the CHIPS Act is even acknowledged by the chief executive of Micron, Sanjay Mehrotra. The passing of the act completes the critical requirements needed by the company to push through the plan to boost domestic chip production. Micron estimated the first phase of the plan to be about a $20 billion investment.
Initial plans about the chip factory
There are already details for the chip factory. In fact, Micron stated that the site preparation would begin next year. The construction would be in 2024, while the production in volume would be after 2025. As for the location of the giant factory, it is said to be built in Clay, N.Y., about 15 miles north of Syracuse.
Moreover, part of the plan is to create nearly 50,000 jobs over the next two decades. The expectation is there will be about 9,000 job offers to be one of the Micron employees, while 40,000 jobs will be open for contractors, supplies, and many more. Basically, a milestone-in-the-making achievement in the creation of jobs.
Takeaway
Over the years, the U.S. has suffered dramatically from the shortage of microchips for appliances, computers, cars, and computers. That’s why the country has depended on other countries, such as China and Taiwan, for semiconductors. Yet, the demand is still expected to grow more.
With the worry of becoming too dependent on other countries, there is no surprise that Micron’s announcement was perceived as a great opportunity to solve the issue and come close to other countries in terms of supply. In fact, President Biden also released a statement that no one should doubt America’s capacity to dominate the industry and that no one should be against the American people. This means a lot in terms of confidence in Micron’s plan.