The investment is supported by grants and credits from the CHIPS and Science Act.
The company said it will create up to 40,000 jobs in the US. The US market share of memory chip production will increase from 2% to 10%. Production is expected to start in the second half of the decade.
Specific plans of the investment will be revealed in weeks.
The goal of the CHIPS and Science Act is to boost U.S. competitiveness. Producing 10% of the world's supply of semiconductors, the U.S. is dependent on East Asia for 75% of the global production.
The CHIPS Act led to an additional $4.2 billion investment from GlobalFoundries. Over the next five years, the company plans to increase chip production in the U.S.
Intel in January said it would invest up to $100 billion to build a new chip complex in Ohio. The full scope of the project is dependent on funding from the CHIPS act.
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