Micron To Spend Up To $100 Billion To Build a Computer Chip Factory In New York

Micron will spend up to $100 billion over at least the next two decades building a new computer chip factory in upstate New York, the state said on Tuesday. CNBC reports: The announcement, first reported by The New York Times, comes after the passage of the CHIPS and Science Act of 2022, a federal law championed by Senate Majority Leader Chuck Schumer, D-N.Y., that allocates $52 billion to encourage more domestic semiconductor production. Micron CEO Sanjay Mehrotra credited the passage of the law for making the investment possible, according to the Times. [...] When the CHIPS Act became law, it spurred 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 create up to 40,000 domestic jobs. Qualcomm also committed to buying an additional $4.2 billion worth of chips from GlobalFoundries' plant in New York. Intel had said its plans to invest up to $100 billion in chip manufacturing in Ohio relied heavily on the federal legislation. New York's Democratic governor, Kathy Hochul, also played a role, working to persuade Micron to bring its plant to Clay, a town near Syracuse, the Times reported. The performance-based incentive package from the state is valued at $5.5 billion and is tied to Micron's commitment to create 9,000 new jobs as well as following through on the $100 billion investment. Micron must also meet certain sustainability standards to get the tax credits. According to a press release from Hochul's office, an economic impact study by Regional Economic Models found the project will create an average of nearly 50,000 jobs in New York state per year over the first 31 years of its operation. It also estimated it would generate an additional $16.7 billion in real, inflation-adjusted, economic output for the state.

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