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US finalizes more than $6.1 bln chips subsidy for Micron Technology
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US finalizes more than $6.1 bln chips subsidy for Micron Technology
Dec 10, 2024 3:32 AM

Dec 10 (Reuters) - The U.S. Department of Commerce has

finalized a subsidy of more than $6.1 billion for memory chip

maker Micron Technology ( MU ) to support the construction of

several domestic semiconductor facilities, according to a White

House statement on Tuesday.

The investment, unchanged from the amount originally

announced in April, marks one of the largest government awards

to chip companies under the U.S. CHIPS and Science Act.

It will fund factory projects in New York and Idaho and is

expected to create at least 20,000 jobs by the end of the

decade.

The commerce department and Micron have also agreed to

preliminary terms for an additional investment of

$275 million to expand the chipmaker's facility in Manassas,

Virginia, which primarily manufactures chips sold in the

automotive, networking and industrial markets.

The additional investment will help "onshore a critical

technology relied upon by our defense industry, automotive

sector and national security community", the White House said.

President Joe Biden's administration has doubled down on

fueling domestic semiconductor production, seeking to reduce

reliance on China and Taiwan. The U.S. has finalized a series of

subsidies, including a $7.86 billion award for Intel and $6.6

billion for Taiwan Semiconductor Manufacturing Co's ( TSM )

U.S. unit.

The final awards come just weeks before President-elect

Donald Trump, who has criticized the program, takes office.

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