Micron to invest up to US$100 billion for Upstate New York chip plant

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Micron to invest up to US$100 billion for Upstate New York chip plant

Chipmaker Micron TechnologyMicron Technology plans to invest up to US $100 billion over the next 20 years to build a computer chip factory complex in Upstate New York in a bid to boost domestic chip manufacturing.

Micron hopes to create nearly 50,000 jobs in New York by the end of the decade, with the first phase investment of US $20 billion planned by the end of the decade.

Micron plans to invest $40 billion in memory manufacturing in multiple phases in the United States through the end of the decade.

After President Joe Biden signed the CHIPS and Science Act in August, the spur in new chip investments came with $52.7 billion in subsidies for US semiconductor production and research to boost competitiveness with China.

Later that month, Brookfield Asset Management and Intel Corp agreed to fund up to $30 billion for chip factories in Arizona.

Biden praised Micron for their investment in manufacturing as a win for America and said it would create tens of thousands of good paying jobs. The shares of Micron were up 3.1 per cent in early trading, due to broader gains.

Micron Chief Executive Sanjay Mehrotra said last week that the company had made a significant reduction to capex, which will be down more than 30 per cent at about US $8 billion for fiscal 2023, as demand for PCs and smartphones slows.