Micron to receive $6.2bn in direct CHIPS Act funding

The Department of Commerce has reached a binding agreement with Micron to award the company $6.165 billion in direct funding under the CHIPS and Science Act. In a statement, the department confirmed the funding will be used to support the construction of three new memory chip fabs: two in Clay, New York, and one in Boise, Idaho, which the company started construction on in 2023.

In addition to the $6.165bn in direct funding, the Biden administration also announced it has signed a separate non-binding Preliminary Memorandum of Terms (PMT) with Micron which could see the company awarded up to $275 million in additional proposed funding to expand and modernize its facility in Manassas, Virginia.

“As the only US-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the US, strengthening the country’s technology leadership and fostering advanced innovation,” said Micron president and CEO Sanjay Mehrotra. “Micron’s investments in domestic semiconductor manufacturing capabilities, supported by the bipartisan CHIPS Act, will help drive economic growth and ensure that the US remains at the forefront of technological advancements.”