SYRACUSE, N.Y.—President Joe Biden traveled to upstate New York on April 25 to promote his administration’s efforts to bring chip manufacturing back to the United States.
He announced that Micron, a U.S. memory chipmaker, would receive $6.14 billion in federal grants through the CHIPS and Science Act, which he signed into law in 2022.
Besides the direct funding, the company will be eligible to receive up to $7.5 billion in loans as part of the incentive package to boost domestic chip manufacturing.
President Biden praised the investment, calling it “a big deal.”
“We’re bringing advanced chip manufacturing back to America after 40 years, and it’s going to transform our semiconductor industry,” he said during a speech to supporters in Syracuse.
The company will use the government incentives to construct two fabrication facilities, known as fabs, in Clay, New York, and one fab in Boise, Idaho, generating $50 billion in private investment by 2030, according to the White House.
Over the next two decades, Micron is committed to investing as much as $125 billion across both states to build a leading-edge memory manufacturing ecosystem, the company announced.
During his speech, President Biden took aim at Republicans, including Elise Stefanik (R-N.Y.), for opposing the CHIPS and Science Act.
“I guess they’re not going to be here today to celebrate,” he said, jokingly. “Now, they’re seeing the massive surge of investment and jobs that we mobilized, and they’re singing a different tune. Now, they say this is critical.”
The CHIPS and Science Act provides $53 billion in subsidies to support the construction of semiconductor plants across the country and reduce reliance on imported chips.
Senate Majority Leader Chuck Schumer (D-N.Y.) praised the deal during a speech at the event, stating that “America’s future will be built in Syracuse, not in Shanghai.”
“We are bringing back manufacturing jobs to America,” he said.
This will be the largest single private-sector investment in the history of New York, according to Mr. Schumer.
During the event, New York Gov. Kathy Hochul highlighted the recent passage in her state of legislation that provides funding for companies looking to invest in New York. She said that, apart from the federal grants, her state has allocated $7.1 billion in grants to Micron for the investment. She said Micron will also receive $5.2 billion from Onondaga County.
“Today, less than 2 percent of the world’s total memory production is here in the U.S. but that is going to change now with the Chips Act,” Micron CEO Sanjay Mehrotra said during the event.
Micron’s project in Idaho, currently in the construction phase, is expected to become operational in 2026. The first factory in New York will be ready for production in 2028, followed by the second factory in 2029.
The investment is expected to create more than 20,000 construction and direct manufacturing jobs and tens of thousands of indirect jobs, according to the White House.
The COVID-19 pandemic exposed the fragility of global supply chains, as well as the vulnerability of the United States to business disruptions.
During the pandemic, there was an unprecedented surge in demand for consumer electronics, resulting in a shortage of semiconductor chips. Automakers were hit especially hard by the supply shortages.
According to Lael Brainard, director of the White House National Economic Council, this investment will “mark a new chapter in the U.S. leadership of semiconductors.”
Micron is the seventh company to receive incentives under the CHIPS and Science Act. So far, the government has provided $29 billion in grants overall, which will generate $348 billion in private-sector investment, she told reporters during a call on April 24.
“That’s $12 of private investment for every $1 of public investment—a great investment for America,” Ms. Brainard said.
President Biden’s visit to Syracuse has stirred controversy after two police officers were killed in the line of duty on April 14. Some lawmakers in New York and members of the local community have voiced opposition to the president’s trip.
