Micron plans $100B computer chip factory in New York
The chipmaker says the megafab will be the largest private investment in New York state history
Micron Technology announced plans Tuesday to invest up to $100 billion over the next few decades to build a massive semiconductor factory in central New York state, saying the "megafab" will be the largest computer chip fabrication facility in the U.S.
The world's fourth-largest semiconductor maker said in a press release that it will break ground on the new project in Clay, New York, near Syracuse, starting next year. The Boise, Idaho-based company expects to spend $20 billion by the end of this decade in the initial phase of development. Micron said upon completion, the site could be as large as 40 U.S. football fields and will amount to the largest private investment in New York state history.
Micron Technology headquarters in Biose, Idaho. The world's fourth-largest chipmaker plans to build the largest semiconductor fabrication facility in the history of the U.S. to increase domestic supply of leading-edge memory and create nearly 50,000 (Photographer: Jeremy Erickson/Bloomberg via Getty Images / Getty Images)
The major long-term project is expected to create 50,000 New York jobs, including 9,000 Micron jobs.
Senate Majority Leader Chuck Schumer (D-N.Y.) said in a statement: "This is our Erie Canal moment. Just as the original Erie Canal did centuries ago, this 21st Century Erie Canal will flow through the heart of Central New York and redefine Upstate New York's place in the global economy for generations to come."
Micron Technology
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MU | MICRON TECHNOLOGY INC. | 109.75 | -3.21 | -2.84% |
CHIPS and Science Act
The announcement of the major chip factory follows Congress' recent passage of the CHIPS and Science Act. The measure, signed into law by President Biden in August, includes $52.7 billion for chip manufacturing and research and a 25% investment tax credit for semiconductor plants.
POPE FRANCIS, APPLE CEO TIM COOK MEET IN PRIVATE VATICAN SIT-DOWN
The aim of the legislation was to bolster chip manufacturing in the U.S. amid prolonged, pandemic-fueled shortages of semiconductors, which are largely produced overseas.
Micron president and CEO Sanjay Mehrotra hailed the CHIPS act as well as state and local incentives for making the project possible.
Sanjay Mehrotra, CEO of Micron, testifies during the Senate Commerce, Science, and Transportation hearing on semiconductors titled Developing Next Generation Technology for Innovation, in Russell Senate Office Building on Wednesday, March 23, 2022. (Tom Williams/CQ-Roll Call, Inc via Getty Images / Getty Images)
"I am grateful to President Biden and his Administration for making the CHIPS and Science Act a priority, to [Senate Majority Leader Chuck] Schumer and a bipartisan coalition in Congress for passing the legislation, and to Governor Hochul and County Executive McMahon for the local and state partnerships that made this investment possible," Mehrotra said.
US TREASURY SEEKS PHASED G7 OIL SANCTIONS AS EU BAN LOOMS
The company said the state of New York is providing $5.5 billion in incentives over the life of the project and that federal grants and tax credits from the CHIPS Act "are critical to support hiring and capital investment." The town of Clay and Onondaga County are also providing infrastructure support, Micron said.
Sen. Schumer celebrated the announcement and crediting the CHIPS Act with making the project possible.
Senate Majority Leader Chuck Schumer (D-NY) speaks during a news conference September 29, 2022 in Washington, DC. (Photo by Drew Angerer/Getty Images / Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"Micron's investment will make New York's semiconductor corridor into a major engine powering our economy and will supply 'Made in New York' microchips to everything from electric vehicles, 5G, and defense technology to personal computers and smartphones."
Schumer added: "The bottom line is that without the CHIPS and Science legislation, Micron would have decided to build its megafaboverseas."
Reuters contributed to this report.