Micron to invest up to $100 billion for major chip plant in New York

Micron Technology plans to invest up to $100 billion over the next few decades to build a massive semiconductor factory in central New York state, saying that the megafab will be the largest computer chip fabrication facility in the U.S.

The world's fourth largest semiconductor maker said in a press release that it will start next year on the new project in Clay, New York, near Syracuse. The initial phase of development is expected to spend $20 billion by the end of the decade, according to the Boise, Idaho-based company. Micron said that the site could be as large as 40 U.S. football fields and will be the largest private investment in New York state history.

The major long-term project is expected to create 50,000 New York jobs, including 9,000 Micron jobs.

Senate Majority Leader Chuck Schumer D-N. Y. said in a statement: This is our Erie Canal moment. The original Erie Canal did centuries ago, but this 21st Century Erie Canal will be built through the heart of Central New York and redefine Upstate New York's place in the global economy for generations to come. The announcement of a major chip factory follows the passage of the CHIPS and Science Act by Congress. The measure, signed into law by President Biden in August, includes $52.7 billion for chip manufacturing and research and a 25% investment tax credit for semiconductor plants.

The legislation was to bolster chip manufacturing in the U.S. amid prolonged, pandemic-driven shortages of semiconductors, which are largely produced overseas.

Micron president and CEO Sanjay Mehrotra praised the CHIPS act as well as state and local incentives for making the project possible.

I am grateful to President Biden and his Administration for making the CHIPS and Science Act a priority, Senate Majority Leader Chuck Schumer and a bipartisan coalition in Congress for passing the legislation, and Governor Hochul and County Executive McMahon for the local and state partnerships that made this investment possible, Mehrotra said.

The state of New York is providing $5.5 billion in incentives over the life of the project and that federal grants and tax credits from the CHIPS Act are critical to hiring and capital investment, according to the company. Micron said that the city of Clay and Onondaga County provide infrastructure support.

The CHIPS Act made the project possible, according to Sen. Schumer.

Micron will make New York's semiconductor corridor a major engine powering our economy, and will supply 'Made in New York's microchips to everything from electric vehicles, 5 G, and defense technology to personal computers and smartphones. Without the CHIPS and Science legislation, Micron would have decided to build its megafaboverseas, Schumer said.