Micron Technology Poised to Receive $6 bn in U.S. Grants for Chip Manufacturing

Micron Technology, a prominent memory chip manufacturer, is expected to receive over $6 billion in grants from the U.S. Commerce Department to support domestic chip manufacturing projects.
Micron’s UFS 4.0 storageThe Commerce Department earlier announced incentives for Samsung, TSMC, Intel, GlobalFoundries, Microchip Technology, and BAE Systems.

It remains unclear whether Micron intends to utilize loans made available through the 2022 CHIPS and Science Act, a legislative initiative aimed at bolstering domestic semiconductor production, according to a report by Bloomberg News.

In recent months, U.S. President Joe Biden has unveiled funding initiatives aimed at strengthening the country’s semiconductor industry. This includes nearly $20 billion in loans and grants allocated to Intel and a $1.5 billion grant earmarked for GlobalFoundries.

The CHIPS Act, with a planned expenditure of $52.7 billion, seeks to diminish reliance on semiconductor manufacturing in China and Taiwan while bolstering domestic chip production capabilities. According to data from the Semiconductor Industry Association, the U.S. share of semiconductor manufacturing capacity has declined from 37 percent in 1990 to 12 percent in 2020, underscoring the need for strategic investments to enhance domestic semiconductor infrastructure.