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Micron will spend up to $100 billion building a new computer chip factory in New York over at least the next two decades, new York Times reported on Tuesday.
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The announcement follows the passage of the CHIPS and Science Act of 2022, a federal law driven by Senate Majority Leader Chuck Schumer, DN.Y., that allocates $52 billion to encourage more domestic semiconductor production. Is. According to the Times, Micron CEO Sanjay Mehrotra credits the passage of the law for making the investment possible.
Shares of Micron were up more than 3% during premarket trading on Tuesday.
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The risks of America’s reliance on foreign computer chip production became apparent during the pandemic, as supply chain issues affected a wide range of goods. Semiconductors are used in a variety of Internet-connected devices, from cell phones to cars to medical devices.
When the CHIPS Act became law, it prompted a wave of investment announcements by semiconductor companies, including Micron, which at the time pledged $40 billion through 2030 for U.S. chip manufacturing, saying it would cover 40,000 domestic will create jobs. Qualcomm also Committed To purchase an additional $4.2 billion worth of chips from GlobalFoundries’ plant in New York. Intel had said that its plans to invest up to $100 billion in chip manufacturing in Ohio depend heavily on federal law.
The choice to set up the factory in New York is a win for Schumer, who has stepped up chips investment and advocated for his state to host new facilities. The Times reported that Democratic Governor of New York, Kathy Hochul, also played a role, working to persuade Micron to move its plant to Clay, a town near Syracuse. According to the Times, the stimulus package from the state is valued at $5.5 billion.
Hochul’s office did not immediately respond to a request for comment on his involvement or the state’s incentives for Micron. Micron also did not immediately respond to a request for comment.
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