Micron also receives billions in subsidies from the US government. The memory manufacturer will receive more than six billion dollars that the company wants to invest in new chip factories. That money will largely go to the construction of new memory factories in New York and Idaho.
Micron signed a provisional agreement with the government of US President Biden on Thursday. Under that agreement, the chip manufacturer will receive $6.14 billion in direct subsidies. Micron is also allowed to take out up to $7.50 billion in cheap loans from the US government.
The memory maker mainly invests the financing in the construction of new memory factories. Micron previously announced that it will build two advanced dram plants in New York State. These are both 'megafabs', which will have almost 58,000 square meters of cleanroom surface area.
In addition, Micron is building a new dram plant in the state of Idaho. It will be built next to Micron's R&D locations near the city of Boise. The factory is intended for 'high volume production', although the announcement does not specify how many wafers the factories will produce per month.
In total, Micron will invest fifty billion dollars in the first three factories over the coming years. That could rise to $100 billion over the next two decades, the White House reported on Thursday. Production at Micron's Idaho plant is scheduled to begin in 2026, followed by the New York plants in 2028 and 2029.
The U.S. government is financing the subsidy through the Chips and Science Act, which provides more than $50 billion in subsidies. is released for the construction of chip factories in the United States. The country wants to become more independent of Asia in the production of advanced chips, partly due to increasing geopolitical tensions between the US and China.
Intel, TSMC, GlobalFoundries and Samsung have previously received billions in subsidies under the American Chips and Science Act. These chipmakers will also all build new factories in the United States. The previously announced subsidy amounts correspond to the amount that Micron was promised on Thursday.
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