Micron to spend up to $100 billion to build a computer chip factory in New York

The New York Times reported on Tuesday that a new computer chip factory will be built in upstate New York.

Senate Majority Leader Chuck Schumer, D-N.Y., pushed for the passage of the CHIPS and Science Act in order to encourage more domestic chip production. The passage of the law was credited by the CEO of the company.

The company's shares were up more than 3% before the market opened.

As supply chain issues impacted a wide range of goods, the risks of the U.S. dependence on foreign computer chip production became apparent. There are a variety of internet- connected devices that use Semiconductors.

When the CHIPS Act became law, it spurred a wave of investment announcements by chip companies, including Micron, which pledged to create up to 40,000 domestic jobs over the course of 15 years. There will be an additional $4.2 billion worth of chips from GlobalFoundries in New York. The federal legislation was a major factor in Intel's plans to invest up to $100 billion in Ohio.

The decision to put the factory in New York is a victory for Schumer, who has advocated for his state to host new facilities. The Times reported that Kathy Hochul, the governor of New York, was involved in persuading Micron to locate its plant in Clay. The package of incentives from the state is worth over $5 billion.

The office of Hochul did not respond to the request for comment. A request for comment was not immediately responded to by the company.

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