Micron to Receive $6B+ US Subsidy, Announcement Soon

Micron Technology has been earmarked to receive upwards of $6.1 billion in grant subsidies from the U.S. Department of Commerce. This substantial allocation aims to support Micron's domestic factory initiatives in the United States, forming a crucial component of efforts to repatriate semiconductor manufacturing to American soil. The official announcement of this subsidy, expected next week, will shed further light on the specifics.

Similar to industry peers Intel and TSMC, Micron is poised to leverage loans as part of its incentive strategy, although the exact value of these financial instruments remains undisclosed.

Representatives from Micron Technology, the U.S. Department of Commerce, and the White House have refrained from providing comments on the matter.

The 2022 U.S. Chip and Science Act has allocated a substantial $39 billion for direct appropriations, supplemented by an additional $750 billion in loans and loan guarantees, all aimed at revitalizing the domestic semiconductor manufacturing landscape. To date, six preliminary awards have been unveiled, with three targeting companies specializing in legacy semiconductor production, and substantial sums allocated to industry giants Intel, TSMC, and Samsung Electronics.

U.S. Secretary of Commerce Gina Raimondo has outlined plans to direct approximately $28 billion of the allocated funding towards pioneering projects. The Department of Commerce emphasizes a priority on initiatives slated for operational readiness by the decade's end. Micron's recent federal filing indicates that two of its four manufacturing sites in New York are on track to meet this timeline, with the remainder scheduled for operational readiness by 2041. Industry insiders speculate that the subsidy allocation for Micron may thus be primarily directed towards the initial two New York facilities.

Micron has additionally committed to establishing a manufacturing presence in Idaho. However, CEO Sanjay Mehrotra recently emphasized that these plans are contingent upon securing sufficient chip subsidies, investment tax credits, and local incentives to address cost differentials compared to overseas expansions. The company's global footprint extends to projects in China, India, and Japan.