Micron pledges $1.3 bn to build US chip capacity

By the end of the decade, Micron Technology Inc. will use anticipated government grants and credits to build out US semiconductor manufacturing capacity.

The company expects to create as many as 40,000 jobs by the year 2025, and will create as many as 40,000 jobs, the Boise, Idaho-based memory manufacturer said on Tuesday. Micron said the investment was funded with subsidies it believes will be awarded from the Chips and Science Act.

Today, less than one in 50 memory chips are produced in the US, said Sanjay Mehrotra, CEO of Micron, in an interview with Bloomberg Television. With Micron's commitment, this will allow us to produce one in 10 chips of the global memory consumption in the US. The company stated last year that it has a $150 billion global investment goal and is part of the spending plan. President Joe Biden is expected to sign the chips act on Tuesday as part of a package of spending and tax reforms. Most of Micron's production is done in Japan, Singapore and Taiwan.

SK Hynix Inc., Japan s Kioxia Holdings Corp., and SK Hynix Inc. said last month it was cutting spending on plants and equipment to slow increases in factory output because of concerns about a glut in the market. Electronic device makers that buy Micron s chips have been scaling back orders to reduce their own inventory.