Micron To Spend Up To $100 Billion To Build New York Chip Fab

Micron Technology is to construct a “sustainably built and operated, leading-edge memory fab to create nearly 50,000 jobs in New York.

The announcement on Tuesday revealed that Micro will spend up to $100 billion in order to build “the largest semiconductor fabrication facility in the history of the United States.”

It comes after Micron broke ground for a $15 billion (£13bn) memory chip plant in Boise, Idaho last month. The firm was reportedly considering building an $80bn facility in Lockhart, Texas.

NY Megafab

But a month later, and the only US-based manufacturer of memory chips has announced plans to build the new megafab in New York, that will “increase domestic supply of leading-edge memory and create nearly 50,000 New York jobs, including approximately 9,000 high paying Micron jobs.”

Micron confirmed it intends to invest up to $100 billion over the next 20-plus years to construct the new megafab in Clay, New York, with the first phase investment of $20 billion planned by the end of this decade.

This represents the largest private investment in New York state history. It said the site could eventually include four 600,000 square foot cleanrooms, for a total of 2.4 million square feet of cleanroom space – the size of approximately 40 US football fields.

Micron’s New York megafab is part of its strategy to gradually increase American-made DRAM production to 40 percent of the company’s global output over the next decade.

Micron controls about 11 percent of the memory chip market, with a key rival being China’s YMTC, which was founded only in 2016 but has already taken about 5 percent of the market.

Site preparation work will start in 2023, construction will begin in 2024 and production output will ramp in the latter half of the decade, gradually increasing in line with industry demand trends.

US Chips Act

“I am grateful to President Biden and his Administration for making the CHIPS and Science Act a priority, to Senator 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,” said Micron President and CEO Sanjay Mehrotra.

“Micron will leverage the diverse, highly educated and skilled talent in New York as we look to build our workforce in the Empire State,” said Mehrotra.

“This historic leading-edge memory megafab in Central New York will deliver benefits beyond the semiconductor industry by strengthening US technology leadership as well as economic and national security, driving American innovation and competitiveness for decades to come.”

The $5.5 billion in incentives from the state of New York over the life of the project alongside anticipated federal grants and tax credits from the CHIPS and Science Act are critical to support hiring and capital investment, Micro stated.

In addition, the Town of Clay and Onondaga County are providing key infrastructure support for Micron’s new leading-edge semiconductor facility.

Job creations

“After years of work, it’s official – Micron is coming to Central New York!” said Senate Majority Leader Charles Schumer.

“With the CHIPS and Science bill, I wrote and championed as the fuse, Micron’s $100 billion investment in Upstate New York will fundamentally transform the region into a global hub for manufacturing and bring tens of thousands of good-paying high-tech and construction jobs to Central New York,” said Schumer.

“Today’s announcement is the result of my long fight to bring manufacturing back to Upstate New York,” said Schumer.

“The bottom line is that without the CHIPS and Science legislation, Micron would have decided to build its mega-fab overseas,” said Schumer. “This investment leaves no question that the future of microchip manufacturing will remain not just in this country, but in Syracuse specifically, and that our future will be built in Upstate New York, with Central New York as a global center of the chip industry.”

Micron and the state of New York also announced a $500 million investment in community and workforce development with a focus on disadvantaged populations over the duration of the project.

Micron will invest $250 million over the next 20-plus years as part of the company’s commitment to the Green CHIPS Community Investment Fund.

An additional $250 million is expected to be invested, with $100 million from New York and $150 million from local, other state and national partners.

Presidential approval

The White House and US President Joe Biden also welcomed the announcement.

“To those who doubted that America could dominate the industries of the future, I say this – you should never bet against the American people,” President Biden stated.

“Today is another win for America, and another massive new investment in America spurred by my economic plan,” said the President. “Micron, an American company, is investing $20 billion dollars this decade and up to $100 billion over twenty years in CHIPS manufacturing in upstate New York, creating tens of thousands of good paying jobs.”

“Together, we are building an economy from the bottom up and the middle out, where we lower costs for our families and make it right here in America,” the President said.