The US Department of Commerce has finalized a more than $6.1 billion subsidy for chipmaker Micron Technology Inc (NASDAQ:MU) for the construction of domestic semiconductor facilities.
The investment marks one of the largest awards to chipmakers from the Biden administration under the CHIPS and Science Act, which includes a $7.86 billion award to Intel Corp (NASDAQ:INTC, ETR:INL) and $6.6 billion for Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM)’s US unit.
The funds will support the construction of memory chip facilities in Clay, New York, and Boise, Idaho which Micron expects will create at least 20,000 jobs by 2030.
Further, the Commerce Department has also signed a preliminary agreement for up to $275 million in funding for Micron to support upgrades at its Manassas, Virginia facility.
The White House said this additional investment will “onshore a critical technology relied upon by our defense industry, automotive sector, and national security community.”
Sanjay Mehrotra, Micron president, said: "As the only US-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the US."
After initially climbing on the announcement, shares of Micron traded 2.4% lower at $100 late morning on Tuesday.