Micron Technology Receives Billions Under CHIPS Act for Memory and Storage Chips Expansion

An influx of cash

The White House announced on Thursday that Micron would receive grants and loans under the CHIPS and Science Act, a program designed to revitalize the semiconductor industry in the U.S. Micron, a leading supplier of memory (DRAM) and storage (NAND) chips, will receive up to $6.1 billion in federal grants to subsidize the construction of two fabrication facilities -- one in Clay, New York, and the other in Boise, Idaho, where Micron is headquartered. In addition to the direct funding, the preliminary agreement also provides $7.5 billion in loans to support these projects.

In return for these funds, Micron has agreed to invest up to $125 billion between the two states over the next two decades to "build a leading-edge memory manufacturing ecosystem."

In addition to the funds from the CHIPS Act, Micron will benefit from the investment tax credit, which provides a credit of 25% for "qualified capital investments." The state of New York is also offering $5.5 billion in incentives over the life of the project.

Micron becomes the fourth chipmaker to receive funds under the program, which has also disbursed $8.5 billion in funds to Intel, $6.6 billion to Taiwan Semiconductor Manufacturing, and $6.4 billion to Samsung.