Micron Technology to invest $15b in new Idaho memory-chip manufacturing facility

One of the world’s largest semiconductor manufacturing companies Micron Technology (NASDAQ: MU) has announced plans to invest $15 billion towards building a new memory-chip manufacturing facility near its headquarters in Boise, Idaho.

The investment takes into account United States federal grants and credits made possible through the CHIPS and Science Act and will span the decade. It marks the first new memory manufacturing fab built in the US for 20 years – bolstering the nation’s supply of leading-edge memory.

Micron president and chief executive officer Sanjay Mehrota said credit goes to the US Biden Administration and its recent initiatives.

“We thank [US] President [Joe] Biden, Secretary of Commerce Raimondo, Secretary of Defense Austin, the Biden-Harris Administration and members of congress for the bipartisan support of the CHIPS and Science Act, which made this investment decision possible,” he said.

“Our new leading-edge memory manufacturing fab will fuel US technology leadership, ensuring a reliable domestic supply of semiconductors that is critical to economic and national security.”

Mr Mehrota also credited the efforts of Idaho state legislators and Governor Brad Little.

“We also appreciate the support of Governor Little and his administration, Idaho state legislators, Mayor McLean and our partners at Idaho Power,” Mr Mehrota added.

“We are proud of the positive impact this investment will have on the community and our more than 6,000 employees located in Boise, Micron’s headquarters and the epicentre of our innovation for over 40 years.”

The new fab facility will generate more than 17,000 jobs for Americans, with 2,000 direct Micron jobs to be created by the end of the decade.

Micron’s investment ambitions

Micron’s latest announcement forms part of the company’s ambitions to invest more than $150 billion globally over the next decade in manufacturing and R&D, including $40 billion within the US to enhance leading-edge memory manufacturing.

This is the company’s first planned US investment and marks the largest private investment ever made in the state of Idaho.

Setting up the new manufacturing fab in the same location as Micron’s R&D centre at its headquarters is expected to improve operational efficiency, accelerate technology deployment and improve time to market.

Biden Administration pushes to make nation more competitive

Just last month, President Biden signed a bill to offer $52.7 billion in subsidies for semiconductor production and research in a bid to make the nation more competitive.

The landmark bill was set up to match China’s ongoing science and technology efforts.

President Biden said Micron’s announcement was “another big win for America”.

“We will make EVs, chips, fibre optics and other critical components here in America and we will have an economy built from the bottom up and middle out,” he said.

The country’s demand in markets such as automotive and data centre have seen significant rise in recent times – fuelled by the adoption of artificial intelligence (AI) and 5G.