On Thursday, Micron Technology, Inc (NASDAQ:MU) announced signing a non-binding Preliminary Memorandum of Terms (PMT) for $6.1 billion in funding under the CHIPS and Science Act.

This funding will support Micron's planned leading-edge memory manufacturing in Idaho and New York.

The CHIPS and Science Act will allocate $6.1 billion in grants to aid Micron's commitment to investing about $50 billion in gross capital expenditures for domestic leading-edge memory manufacturing through 2030.

These grants and additional state and local incentives will facilitate the construction of one leading-edge memory manufacturing facility next to Micron's existing leading-edge R&D facility in Boise, Idaho, and two leading-edge memory facilities in Clay, New York.

Today's announcement marks the first phase of Micron's strategy to establish a leading-edge R&D and manufacturing center in Boise, Idaho, and a four-fab manufacturing complex in Clay, New York, over the next twenty-plus years.

This strategy involves a potential investment of up to $125 billion and aims to grow Micron's memory bit supply to match long-term industry demand growth.

Micron's planned advanced semiconductor manufacturing facilities will likely generate approximately 75,000 domestic jobs over the next 20-plus years.

Analysts have highlighted Micron's leadership in the high-bandwidth memory (HBM) product sector, with HBM3E offering 30% greater power efficiency than competitors, translating into significant revenue visibility.

Micron projects that its market share in HBM will match its broader DRAM market share by 2025. Adopting HBM could significantly influence Micron's gross margins, potentially restoring them to peak levels seen in memory cycles, as per analysts.

Price Action: MU shares traded lower by 0.05% at $111.72 on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors