Micron Wins $6.1B CHIPS Grant To Build Complex Of Computer Chip Plants

Micron Technologies is set to receive $6.1B in CHIPS Act funding, joining the winner's circle of companies looking to boost domestic semiconductor production with the program, Bloomberg reported.

While not yet finalized, the award is expected to be announced next week during President Joe Biden's trip to Syracuse, New York. The memory chipmaker is planning a massive manufacturing complex there with up to four buildings, Sen. Chuck Schumer told Syracuse.com. An Idaho plant is also in the works.

Micron originally considered Central Texas for the project, but ultimately went with New York because of sweeter federal, local and state incentives.

Construction of the factories was contingent upon funding from the CHIPS Act, investment tax credits and local incentives, Micron CEO Sanjay Mehrotra said in a statement last month. Micron's award includes federal loans, similar to previous grants from the program, though the amount has not been made public, according to Bloomberg.

It was first reported in March that Micron was expected to receive CHIPS funding along with Samsung and Taiwan Semiconductor Manufacturing Co.

Samsung's award includes $6.4B in direct grants to build a plant in Taylor, Texas, outside of Austin, The White House stated Monday. The company intends to invest over $40B in Central Texas in coming years, including building the $17B, 11M SF chipmaking plant in Taylor and expanding its fabrication facility in Austin.

Taiwan Semiconductor Manufacturing Co. is poised to get up to $6.6B to build its third Phoenix-area plant under the company's Arizona subsidiary, it was announced last week. Part of the deal is an additional $5B in loans, adding up to a grand total of $11.6B.

CHIPS money is in high demand and hard to come by. The federal government has $39B to allocate in grants plus $75B to issue in loans and loan guarantees, but the Commerce Department modified the act in March due to budget reallocation. Companies that aren't in the business of making chips no longer make the cut, leaving some projects up in the air.

Applied Materials' $4B R&D facility plans in San Francisco were dependent on CHIPS support to determine scale. No longer qualified, the company is considering changing locations, scaling back or canceling the plans altogether.

Other recipients of CHIPS funds include Intel, Microchip Technologies, GlobalFoundries and BAE Systems.

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