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Micron to invest up to $100 billion in semiconductor factory in New York

Published 10/04/2022, 09:43 AM
Updated 10/04/2022, 04:21 PM
© Reuters. FILE PHOTO: The logo of U.S. memory chip maker MicronTechnology is pictured at their booth at an industrial fair in Frankfurt, Germany, July 14, 2015. REUTERS/Kai Pfaffenbach/File Photo

(Reuters) -Chipmaker Micron Technology (NASDAQ:MU) said on Tuesday that it planned to invest up to $100 billion over the next 20-plus years to build a computer chip factory complex in upstate New York, in a bid to boost domestic chip manufacturing.

The project, which Micron claims will be the world's largest semiconductor fabrication facility, is expected to create nearly 50,000 jobs in New York, with the first phase investment of $20 billion planned by the end of this decade.

Micron in August announced its plans to invest $40 billion through the end of the decade to build memory manufacturing in multiple phases in the United States.

The spur in new chip investments comes after President Joe Biden signed the CHIPS and Science Act in August, providing $52.7 billion in subsidies for U.S. semiconductor production and research to boost competitiveness with China.

Later that month, Intel Corp (NASDAQ:INTC) and Canada's Brookfield Asset Management agreed to jointly fund up to $30 billion for chip factories in Arizona.

Biden on Tuesday praised Micron for the investment in manufacturing as "another win for America" and would create "tens of thousands of good paying jobs."

Shares of Micron were up 3.1% in early trading, amid broader gains.

Micron Chief Executive Sanjay Mehrotra said last week that the company had made "significant" reductions to capex, which will be down more than 30% at about $8 billion for fiscal 2023 as demand for PCs and smartphones slows. [nL4N3103UN]

Latest comments

Once the tax incentives are gone Micron will be gone just like many businesss.Typical NY
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