Over the next 20 years or more, the company plans to invest as much as $100 billion to build a huge computer chip factory complex in upstate New York.
A sign that the federal government is helping to steer investment decisions is the commitment by Micron. The legislation, called the CHIPS and Science Act of 2022, provides billions of dollars in grants and subsidies for companies to build and expand computer chip factories in the country.
The chief executive of the company said that they would not be here today if it weren't for the act.
The legislation, along with favorable tax treatment and partnerships with state governments like New York, are some of the key ingredients needed to bring chip-making back to America.
The chip legislation has been championed by Senator Charles Schumer who is the majority leader. Kathy Hochul was working on the state's side.
Mr. Schumer said that the legislation he worked on for chips resulted in the decision. He thinks the economy would have fallen if America hadn't done that. Over the years we have let the manufacturing slip away. We are reversing that right now.
The investment is made by the company and the government. The company said that it would spend $20 billion through the end of the decade. The company said it would invest as much as $100 billion in New York.
The giant factory will be built in Clay, New York. Next year, site preparation will begin, followed by construction in 2024 and production in 25 years.
The project will create over 50,000 jobs over the next 20 years, according to the company. $500 million will be spent by the state on community and work force training.
New York's incentive package is one of the largest in the country. As job creation and private investment are met, the financial support will come in stages.
It's not clear how much federal support the project will get. TrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkiaTrademarkia
Mr. Schumer and Ms. Hochul talked to Mr. Mehrotra a lot. Ms Hochul grew up in Buffalo. I lived through the decline of manufacturing in the area.
She said the investment could revive the region as a manufacturing hub.
There is a chip-making history in upstate New York. Outside Albany, GlobalFoundries has a plant. GlobalFoundries bought IBM's chip manufacturing operations. There is a research center at the State University of New York.
Semiconductors are both capital-intensive andcyclic. The current cycle doesn't look like it's going to last long.
Concerns that the US was becoming too dependent on Asia to make computer chips had been growing for years. When supply chain disruptions and chip shortages affected the production of cars and other goods, those worries increased. China has increased its military threats to Taiwan.
The federal chip legislation was supported by those industry and geopolitics. Since the Trump administration came to power, it has been clear to chip makers that they would be encouraged to manufacture in the United States. There was bipartisan support for the final bill in Congress.
The market cycle for chips has changed recently. Consumer spending has been affected by the war in Ukraine and other factors.
According to a research firm, shipments of personal computers are expected to decline this year. Sales of mobile devices are soft.
Personal computers, phones, data centers, cars, and an array of other electronic products are all powered by the memory and data storage chips made by Micron. The company reported a 20 percent falloff in sales in its most recent quarter, to $6.64 billion.
The demand for memory chips is expected to double by the end of the decade.
Major chip makers are expanding their operations in the US. In January, Intel said it would invest $20 billion to build two chip plants.
The company said it would build a 17 billion dollar plant in Texas. Adding several more in the state with a long-term investment of nearly $200 billion was raised. Taiwan Semiconductor Manufacturing Company plans to build a $12 billion factory in Arizona.
The chairman of T.S.M.C. told shareholders this year that the price tag was likely to go higher due to the lack of skilled workers in the US.
Mr.Liu said that his company would proceed with its plans in the US.
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