Micron Gets $6.14B Subsidy, Shift DRAM Capacity to U.S.

On April 25, the U.S. government, under the leadership of the Biden administration, announced the signing of a preliminary non-binding memorandum of terms (PMT) between the U.S. Department of Commerce and Micron Technology. This agreement outlines an allocation of up to $6.14 billion in direct funding to Micron under the CHIPS and Science Act. The goal is to boost U.S. competitiveness in advanced memory semiconductor production.

This proposed funding will support Micron's construction of two state-of-the-art DRAM factories in New York, representing the initial phase of Micron's long-term investment plan in the state. The plan, valued at approximately $100 billion, is projected to span the next 20 years and is expected to create around 13,500 jobs across facilities and construction. In addition, the proposed funding will also back Micron's $25 billion investment in an Idaho DRAM factory, located alongside Micron’s research and development facilities in Boise. This project is set to create roughly 6,500 jobs.

Micron's investments align with its broader initiative to shift around 40% of its DRAM chip capacity to the U.S. over the next two decades.

In addition to direct funding, the CHIPS Act project office will offer Micron up to $7.5 billion in proposed loans, as part of the $75 billion loan authorization under the CHIPS and Science Act.

New York State has pledged $5.5 billion in incentives for Micron’s project in Clay, NY. Micron and New York State have also established the Green CHIPS Community Investment Fund, which will invest $500 million throughout the project for community and workforce development, including $250 million from Micron.

The four major advanced manufacturers—Micron Technology, Intel, TSMC, and Samsung Electronics—building facilities in the U.S. will receive a total of $27.6 billion in funding.

Micron’s factory in Boise, Idaho, is currently under construction and will receive funding, aiming to start production by 2026. Meanwhile, two additional factories in the Syracuse, NY, area are scheduled for completion and readiness for production in 2028 and 2029, respectively.

The U.S. Department of Commerce expects Micron's projects to create around 20,000 construction and manufacturing jobs. Micron has signed labor agreements with its building trades unions at the New York and Idaho facilities, and the CHIPS and Science Act will provide an additional $40 million for workforce training.