By Sam Boughedda
Micron Technology (NASDAQ:MU) said on Tuesday that it plans to build the largest semiconductor fabrication facility in the history of the U.S. in Clay, New York.
The company said in its press release that the new megafab will increase the domestic supply of memory and create nearly 50,000 jobs in New York, including roughly 9,000 high-paying Micron jobs.
Micron's announcement follows the passing of the CHIPS and Science Act of 2022, a federal law that allocates $52 billion to promote more domestic semiconductor production.
The company said in its press release that the $5.5 billion in incentives from the state of New York over the life of the project and anticipated federal grants and tax credits from the CHIPS and Science Act are "critical to support hiring and capital investment."
Micron, one of the world's largest semiconductor companies, will invest up to $100 billion over the next 20-plus years to construct the new megafab. The first phase of the investment — $20 billion — is planned by the end of this decade. The company said site preparation work will start in 2023, with construction beginning in 2024.
The megafab is part of Micron's strategy to gradually increase American-made DRAM production to 40% of the company's global output over the next decade.