Micron Intends to Get $6.1 Billion in Grants From US

The company Micron Technology, which specializes in the implementation of activities for the production of memory chips, will receive $6.1 billion in grants from the Commerce Department of the United States.

Micron Intends to Get $6.1 Billion in Grants From US

The statement on the financing intended for the mentioned maker microcircuits was made last Thursday, April 18, by the leader of the Democratic majority in the Senate, Chuck Schumer. It is worth noting that the provision of grants for Micron is not yet a final approved decision.

Chuck Schumer, who is a senator from New York State, said that financing will be awarded to chip manufacturing sites in the mentioned region and Idaho. This funding will be provided to the company under the Chips and Science Act.

Chuck Schumer says that the monumental and historic federal investment will help Micron realize a transformative four-plant project worth more than $100 billion in New York. Also in this context, he noted that the materialization of the mentioned project will create 50,000 jobs. If Micron’s plans are fully implemented in the space of objective reality, the result will be a significant factor affecting not only the technology sector of the United States but also the status of affairs in the labor market.

According to Chuck Schumer, the mentioned firm intends to build a complex of chip manufacturing plants in New York over the next 20 years.

Micron is based in Boise, Idaho. The company was founded in 1978 by Ward Parkinson, Joe Parkinson, Dennis Wilson, and Doug Pitman. From the very first day of its existence, Micron positioned itself as a semiconductor design consulting firm. The company’s revenue amounted to $15.54 billion last year.

The provision of public funds to Micron is another message in a series of news about the allocation of grants under the Chips and Science Act. The mentioned law reflects the desire of the United States to reduce the level of dependence on Asian manufacturers of microcircuits and to form a reliable supply chain of products belonging to the category of advanced technologies on its territory.

Data from the Semiconductor Industry Association shows that the US share of global chip production decreased from 37% to 12% between 1990 and 2020. In the United States, many lawmakers point out that the country’s dependence on TSMC, based in Taiwan and the world’s largest maker of microcircuits, is potentially risky since China perceives the self-governing island as its territory and can use military action methods to restore the borders provided for by the doctrine of national geography, which Beijing currently adheres to.

It is worth noting that TSMC has received $6.6 billion in financing from Washington to develop production in the United States. The leadership of the US has also provided grants for $8.5 billion for Intel as part of similar goals.

In total, the Chips and Science Act provides for the allocation of 52.6 billion dollars for the development of chip production in the United States. The US Commerce Department provides $28 billion in government subsidies for making modern microcircuits, although it has requests worth more than $70 billion and lending authority amounting to $75 billion in monetary terms.

New York Governor Kathy Hochul spoke about the agreement with Micron this week, noting that the implementation of the company’s project will help revitalize the state’s economy. In this context, investments worth $100 billion and social benefits worth hundreds of millions of dollars were mentioned separately. Also, Kathy Hochul noted that this is the largest private investment in American history.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.