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  • Writer's pictureOlga Nesterova

Biden-Harris Administration Propels U.S. Semiconductor Independence with Historic Micron Deal

Proposed $6.14 Billion Investment Sets Stage for Onshoring Leading-Edge Memory Chip Production


President Joe Biden speaks virtually during an event in the South Court Auditorium on the White House complex in Washington, Monday, July 25, 2022. (AP Photo/Susan Walsh)
President Joe Biden speaks virtually during an event in the South Court Auditorium on the White House complex in Washington, Monday, July 25, 2022. (AP Photo/Susan Walsh)

In a monumental stride toward fortifying U.S. semiconductor capabilities, the Biden-Harris Administration has unveiled a groundbreaking preliminary agreement with Micron Technology.


Under the proposed terms, the U.S. Department of Commerce would allocate up to approximately $6.14 billion to bolster domestic production of leading-edge memory chips—a move set to reshape America's technological landscape for the first time in decades.

Micron, renowned as a global leader in leading-edge DRAM technology, stands poised to usher in a new era of semiconductor manufacturing within the United States. The agreement aims to propel Micron's ambitious vision, encompassing investments of up to $100 billion over two decades, with initial focus on erecting cutting-edge Dynamic Random-Access Memory (DRAM) fabs in New York.


“This is a historic moment for semiconductor manufacturing in the U.S.,” said Micron President and CEO Sanjay Mehrotra.

The significance of this initiative extends far beyond economic considerations. By nurturing a robust domestic supply of leading-edge DRAM chips, the Biden-Harris Administration seeks to enhance U.S. competitiveness in critical sectors such as artificial intelligence, wireless communications, and automotive technology.


Currently dominated by East Asia, the production of leading-edge DRAM chips will now witness a transformative shift, positioning the United States as a global frontrunner in memory semiconductor technology.

Micron's commitment to invest in New York and Idaho over the next two decades is poised to generate approximately 20,000 jobs and catalyze up to $125 billion in private capital. With an emphasis on community revitalization and workforce development, Micron's projects promise to invigorate local economies while nurturing a highly skilled workforce to drive innovation forward.


The proposed investment encompasses the construction of state-of-the-art manufacturing facilities in Clay, New York, and Boise, Idaho. These facilities, boasting the largest amount of cleanroom space ever announced in the United States, will serve as the cornerstone of America's leading-edge DRAM chip ecosystem.


Moreover, Micron's commitment to sustainability underscores its dedication to responsible manufacturing practices, with plans for net-zero emissions by 2050.

Integral to Micron's strategy is the cultivation of a robust talent pipeline. Through partnerships with educational institutions and workforce development programs, Micron aims to equip individuals with the skills necessary to thrive in the semiconductor industry. Initiatives such as registered apprenticeships and curricular frameworks underscore Micron's commitment to fostering a diverse and highly skilled workforce.


The proposed agreement also includes significant support from both federal and state governments, further underscoring the collaborative effort to bolster U.S. semiconductor capabilities. With incentives, loans, and tax credits, the stage is set for Micron to lead the charge in reshaping America's technological future.


As the Biden-Harris Administration continues to champion initiatives under the CHIPS for America program, the landscape of U.S. semiconductor manufacturing is undergoing a profound transformation. With Micron at the helm, the United States is poised to reclaim its position as a global leader in semiconductor innovation, driving economic growth and technological advancement for generations to come.


Source: DOC, www.chips.gov

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