Micron, an American producer of computer memory and computer data storage, is expected to spend up to $100 billion over the next 20 years on the development of a computer chip factory in upstate New York, according to a statement this week.
This move is supported by the approval of the CHIPS and Science Act of 2022, a federal law that will offer $52 billion to support domestic semiconductor production. The act is expected to shift reliance away from imports of foreign chips, which has remained difficult this year due to ongoing supply chain issues. Semiconductors are in high demand, used in a plethora of internet-connected devices including cell phones, cars, and medical devices.
Micron has committed to creating 9,000 new jobs in the New York region. Furthermore, the firm must meet several sustainability standards to receive the tax credits. This Tuesday morning, Micron’s shares increased by 4.5%.
Senate Majority Leader Chuck Schumer, D-N.Y, who backed the new legislation believes that this was a major win for U.S. manufacturing, as Micron would have likely developed its new facility abroad if not for the new CHIPS Act. Schumer believes Upstate New York will quickly become a global hub for microchip manufacturing.
An economic impact study predicts that the new law will support the creation of 50,000 jobs in New York state over the first 31 years of its operation. In addition, it is expected to generate $16.7 billion in economic output for the state.
Micron is not the only chip producer to announce new investments in semiconductor production following the new law. Qualcomm also announced a $4.2-billion purchase agreement for chips from Global Foundries, while Intel announced plans to invest up to $100 billion in an Ohio-based chip manufacturing plant.