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The U.S. Department of Commerce has awarded $6.1 billion to Micron Technology (MU, Financials) to support the construction of memory chip manufacturing facilities in Clay, New York, and Boise, Idaho.
One of the biggest under the CHIPS and Science Act, this investment fits Micron's $125 billion long-term strategy to boost semiconductor output in the United States.
By 2034 the project is intended to raise the U.S. share of advanced memory manufacture from almost 0% to 10%. By the end of the decade, the initiative will generate minimum 20,000 employment. The Commerce Department also revealed initial parameters for a $275 million investment meant to expand Micron's Manassas, Virginia, plant. This growth seeks to bring onshore important technology used in the national security, automotive, and military industries.
Designed to lower U.S. reliance on foreign vendors and solve semiconductor supply chain weaknesses, the CHIPS and Science Act Project labor agreements and registered apprenticeship programs are intended to be used to finish Micron's projects thereby guaranteeing cost effectiveness and economic advantages for surrounding local areas.
Micron's new initiatives complement the larger aim of the act, which allocates $52 billion to encourage domestic semiconductor manufacture, solves supply chain problems, and improve U.S. competitiveness in key technologies. The corporation has not yet revealed schedules for the opening of these buildings.
This article first appeared on GuruFocus.