Micron Technology, the largest memory chip manufacturer in the United States, is preparing to secure a $6.1 billion grant from the U.S. Department of Commerce to help pay for domestic factory projects as part of an effort to bring semiconductor production back to the United States, according to the South China Morning Post.
According to people familiar with the matter, the subsidy has not been finalized, and the specific plan is expected to be announced next week.
Like Intel and TSMC, Micron will also accept loans as part of its incentive program, and the total value of these loans remains unclear, two people familiar with the matter said.
As part of the statement, U.S. President Joe Biden is scheduled to travel to the Syracuse area of New York on April 25, people familiar with the matter said. Micron Technology, headquartered in Boise, Idaho, is building a facility in Syracuse and near its headquarters.
The report pointed out that this potential subsidy, second only to Intel, TSMC and Samsung, is used to pay for the construction of domestic chip factories in the United States, of which Micron's two new U.S. chip factories are expected to be officially put into operation before 2030.
After the initial agreement is announced, Micron will enter months of due diligence before receiving funding in installments based on project-specific benchmarks.
Representatives of Micron Technology, the US Department of Commerce and the White House declined to comment.
The U.S. CHIPS and Science Act of 2022 allocated $39 billion for direct appropriations, as well as $75 billion worth of loans and loan guarantees, to revive the U.S. chip manufacturing industry.
To date, the United States has announced six preliminary awards: three of which are awarded to companies that produce older generation semiconductors. In addition, the three major chip giants, Intel, TSMC, and Samsung, have all received subsidies from the U.S. government, totaling $21.5 billion, accounting for nearly 55% of the $39 billion in factory construction subsidies in the Chips Act.
U.S. Secretary of Commerce Gina Raimondo said the agency plans to allocate about $28 billion of the grant to cutting-edge technology projects.
Micron said in a recent federal filing that two of its four production sites in New York are on track to meet this benchmark, while the other two will not be operational until 2041.
Micron also promised to build a factory in Idaho. But Micron CEO Sanjay Mehrotra said last month that the plans "require Micron to receive adequate chip grants, investment tax credits and local incentives to address cost disparities compared to overseas expansion." The company also has projects in China, India and Japan.
According to available information, the U.S. Department of Commerce currently prioritizes supporting projects that will be put into operation in 2030, rather than long-term projects. People familiar with the matter said earlier that this means that Micron's awards may only support the first two facilities in New York.