Biden-Harris Administration Teams with Micron for Leading-Edge Memory Chip Production in U.S.

On April 25, 2024, the Biden-Harris Administration announced a significant investment proposal between the U.S. Department of Commerce (DOC) and leading American computer memory and data storage manufacturer, Micron Technology, that will support the domestic production of cutting-edge memory semiconductor chips, and create around 20,000 jobs in the process.

These preliminary terms will onshore production of this important technology for the first time in almost twenty years. The proposed investment is part of the Administration’s broader CHIPS for America initiative, aimed at stimulating private sector investment, creating jobs, and strengthening communities.

Preliminary Terms with Micron

The Biden-Harris Administration plans to provide up to roughly $6.14 billion in direct funding under the CHIPS and Science Act to increase America’s competitiveness in the semiconductor industry. Semiconductors are a crucial element for various technologies like AI, wireless communications, and automotive.

The project includes the development of a large-scale facility in New York, dubbed a "megafab,” and a high-volume manufacturing (HVM) fab in Idaho, both focusing on producing advanced Dynamic Random-Access Memory (DRAM) chips.

Semiconductor Chip Manufacturing in the U.S. 

In addition to making these DRAM fabs, Micron plans to use the funding to create thousands of construction/facility jobs over the span of two decades—approximately 13,500 in New York, and 6,500 in Boise, Idaho. This initiative marks a shift in semiconductor manufacturing, with the U.S. aiming to reduce its reliance on foreign production, particularly in East Asia. 

By investing in Micron, the Administration aims to strengthen the domestic supply chain and enhance economic and national security. Micron has been very vocal about its commitment to sustainability and community development; the preliminary terms include plans for renewable energy use, workforce training programs, and even childcare support for employees. 

CHIPS for America 

The bipartisan CHIPS and Science Act of 2022 was signed into law by President Biden in an important move to further the Administration’s economic agenda. The initiative aims to greatly strengthen America’s semiconductor industry, encourage private investment, create well-paying jobs, and bolster communities. 

The initiative covers both manufacturing, and research and development programs, and is overseen by the CHIPS Program, and Research and Development Offices within the National Institute of Standards and Technology (NIST) at the DOC.

Biden-Harris Administration/Micron Semiconductor Production in the U.S.—Summary

These preliminary terms represent a strategic move to maintain U.S. leadership in advanced technologies critical for various sectors, from communication to AI. It also focuses on sustainability and community development for industry growth that will benefit both the economy and society.

These innovations will propel the U.S. semiconductor ecosystem forward, enhance economic security, and improve citizens’ quality of life. With the help of strategic partnerships, incentives, and investments, the program aims to make America a leading global competitor in the industry with a resilient and sustainable supply chain.