Source: Finance Association
① Micron's total investment will be the largest private investment in the history of New York State and Idaho, creating more than 70,000 jobs; ② In addition to $6.1 billion in government funding, Micron is also eligible for investment tax credits from the US Treasury.
On Thursday EST, America's largest manufacturer of computer memory chips$Micron Technology (MU.US)$It was announced that it will receive 6.1 billion US dollars of funding from the US federal government to build three chip manufacturing plants. This is the latest amount of funding granted under the US Chip Act.
Since the news has been reported by many media before, it did not have much impact on Micron's stock price. Before the US stock market, Micron's stock price was basically flat, but the increase during the year was as high as 30%.
According to the US Department of Commerce, government subsidies will support Micron to establish two advanced fabs in Cray, New York. This is also the first step in Micron's plan to invest up to 125 billion US dollars in New York and Idaho over the next 20 years to create tens of thousands of jobs.
In addition, Micron also plans to use this capital to build another chip manufacturing plant in Boise, Idaho, where it is headquartered, to launch a $25 billion investment program and create 6,500 jobs.
“Micron's total investment will be the largest private investment in the history of New York State and Idaho, creating more than 70,000 jobs, including 20,000 direct manufacturing and construction jobs, and tens of thousands of indirect jobs,” the White House said.
In addition to the $6.1 billion government grant, Micron is also eligible for the US Treasury's investment tax credit, which will provide a 25% credit for qualified capital investments. Additionally, the New York state government will provide $5.5 billion worth of incentives.
Micron and New York State have also established the Green Chip Community Investment Fund to support community and workforce development in the region. The company will also benefit from an Idaho incentive program, including reduced state-level taxes associated with the project, and significant investment in semiconductor workforce training programs.
Sanjay Mehrotra, CEO of Micron, said: “This is a historic moment for the US semiconductor manufacturing industry. Micron's cutting-edge memory chips are the foundation for meeting the growing demand for artificial intelligence, and we are proud to make significant investments in memory manufacturing in the US, which will create many high-tech jobs.”
US Secretary of Commerce Raymond claims that cutting-edge memory chips are the foundation of all advanced technology, and the Biden administration is rebuilding the ability to produce these key technologies. Through these government grants and Micron Technology's investment, Biden is working to revitalize America's technical leadership and create tens of thousands of high-paying jobs.
This initial funding agreement between Micron and the US Department of Commerce is the fifth major funding provided to the chip manufacturing giant in the past few weeks under the “Chip Act” passed in 2022.
Last week, the US Department of Commerce announced that it had reached a preliminary agreement with South Korea's Samsung Electronics to provide direct subsidies of up to 6.4 billion US dollars in accordance with the US Chip Act.
Earlier, TSMC received 6.6 billion US dollars in subsidies, and the company is preparing to invest 65 billion US dollars to set up three chip factories in Phoenix, Arizona; Intel received 8.5 billion US dollars, and the company plans to invest more than 100 billion US dollars in the US within the next five years.
editor/tolk