U.S. Pumps $6.2 Billion Into Micron—Could This Help the U.S. Lead the Semiconductor Race?

The U.S. Department of Commerce has finally agreed to provide Micron Technology with approximately $6.2 billion in subsidies under the CHIPS Act.

On Tuesday, Bloomberg reported that this deal matches the amount announced in April when Micron and the Department disclosed a preliminary memorandum of terms (PMT) for semiconductor subsidies.

Micron intends to allocate the subsidies to establishing new semiconductor plants in New York and Idaho and expanding its existing facility in Virginia. The company plans to invest $100 billion in New York, $25 billion in Idaho, and over $2 billion in its Virginia production site.

In a press release, Commerce Secretary Gina Raimondo stated that this investment in Micron will help bring the development and production of cutting-edge memory semiconductor technology back to U.S. soil, a key objective of the CHIPS Act. “With this investment in Micron, we are delivering on one of the core objectives of the CHIPS program – onshoring the development and production of the most advanced memory semiconductor technology, which is crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security,” she added.

Beyond Micron, the Commerce Department has also inked government subsidy agreements with Intel Corporation, TSMC, and GlobalFoundries. Raimondo had previously expressed her intention to allocate nearly all semiconductor support funds before the conclusion of President Biden’s term.