SYRACUSE, N.Y.—President Joe Biden traveled to upstate New York on Thursday to promote his administration’s efforts to bring chip manufacturing back to America.
He announced that Micron, an American 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 incentive to construct two 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 up to $125 billion across both states to build a leading-edge memory manufacturing ecosystem, the company announced.
This will be the largest private sector investment in the history of New York and Idaho.
During his speech, President Biden took aim at Republicans, including New York congresswoman Elise Stefanik, for opposing the CHIPS and Science Act.
“I guess they’re not going to be here today to celebrate,” he joked. “Now they’re seeing the massive surge of investment and jobs that we mobilized and they’re singing a different tone. 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.
During the event, New York Gov. Kathy Hochul highlighted the recent passage of legislation in her state that provides funding for companies looking to invest in New York. She stated that, apart from the federal grants, her state 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 over 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 has become 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, Ms. Brainard 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,” she said.
President Biden’s visit to Syracuse has stirred controversy after two police officers were killed in the line of duty last week. Some lawmakers in New York and members of the local community have voiced opposition to the president’s trip.
From The Epoch Times
