Micron to Invest $2.17B to Expand U.S. DRAM Production

Virginia Governor Glenn Youngkin recently announced that Micron Technology plans to invest $2.17 billion to expand its semiconductor facility in Manassas, Virginia. The project is set to create 340 new jobs and significantly boost semiconductor manufacturing in the United States. The upgraded facility will focus on producing specialized DRAM memory for industrial, automotive, aerospace, and defense applications.

Earlier in December, Micron revealed it had secured $275 million in federal funding under the CHIPS and Science Act to modernize its Manassas facility. This initiative aims to shift automotive DRAM production from Taiwan to the U.S. The company reported at the time that the Virginia facility employs 1,230 staff members, and the expansion is expected to generate an additional 950 construction jobs and over 400 manufacturing positions.

Micron may also receive up to $70 million in special funding approved by the MEI Commission, contingent upon meeting its $2 billion investment commitment and creating 340 new jobs. Final approval will require a green light from the Virginia General Assembly.

The company has not yet disclosed the specific upgrades planned for the wafer fab or how much additional manufacturing capacity will be added. Typically, long-lifecycle DRAM used in industrial, automotive, aerospace, and defense sectors requires smaller-scale production facilities, as these products are not manufactured using cutting-edge technologies. Since specialized DRAM does not rely on advanced EUV lithography tools, Micron's $275 million federal funding could cover a significant number of DUV lithography systems, each valued between $30 million and $50 million.

Micron President and CEO Sanjay Mehrotra highlighted the company's commitment to bolstering domestic innovation:“As the only memory manufacturer headquartered in the U.S., Micron is uniquely positioned to bring advanced memory manufacturing technologies to the country, enhancing America's technological leadership and fostering innovation. We are grateful for the ongoing support from Governor Glenn Youngkin and the Virginia General Assembly as we remain dedicated to producing long-lifecycle DRAM in Virginia to meet the future memory demands of the nation's defense, aerospace, automotive, and industrial sectors.”