Micron Lands $6 Billion in Federal Grants To Make Chips in US | Global News Avenue

The U.S. Commerce Department said on Tuesday that Micron Technology (exist) has received up to $6.165 billion in funding to make semiconductors in the United States as part of the program CHIPS and Science Act of 2022.

The agency said the funding will support MicronIts “two-decade vision” calls for investing about $100 billion in New York and $25 billion in Idaho to build new factories and create about 20,000 new jobs. this Ministry of Commerce It also said that Micron will receive funding gradually based on the completion of certain milestones.

In addition, the department has signed non-binding agreement Allocation of up to $275 million with company to expand and modernize Micron’s DRAM memory chip Factory in Manassas, Virginia.

Grants to fund three new memory chip manufacturing plants

CEO of Micron Technology (CEO) Sanjay Mehrotra said that as the only memory chip manufacturer headquartered in the United States, “Micron is uniquely positioned to bring leading memory manufacturing technology to the United States, strengthen the country’s technology leadership, and cultivate advanced memory chip manufacturers ” innovation“.

The original grant was Announced in Aprilfollowed by a statement on Tuesday due diligence Conducted by Department of Commerce officials. At the time, Micron explained that the funding would be used to build a leading memory manufacturing facility co-located with the company’s existing R&D facility in Boise, Idaho, and to build two leading memory manufacturing facilities in Boise, Idaho. Clay, New York.

The news did little to help Micron Technology’s stock price, which fell 4.5% on Tuesday and was trading at $98.21 this afternoon. Still, shares are up 15% year to date.