The U.S. Department of Commerce has solidified a significant financial commitment to bolster domestic semiconductor production, earmarking over $6.16 billion for Micron Technology (MU). This move, reported by CNBC citing a White House statement, is part of a broader strategy under the U.S. CHIPS and Science Act to reduce dependency on foreign chip manufacturing, particularly from China and Taiwan.
This hefty subsidy will facilitate the construction of new semiconductor facilities in New York and Idaho, with expectations that it will generate at least 20,000 jobs by the end of the decade. The initiative is not just about job creation; it aims to reinforce the U.S.’s position in the high-stakes tech industry where semiconductor chips are integral to everything from defense to consumer electronics.
In addition to the primary investment, there’s a preliminary agreement for an extra $275 million to expand Micron’s operations in Manassas, Virginia. This expansion focuses on chips vital for the automotive, networking, and industrial sectors, underscoring the strategic importance of onshoring these technologies for both national security and economic resilience.
The Biden administration’s push to enhance domestic chip manufacturing comes at a critical time, with the finalization of these subsidies occurring just weeks before Donald Trump, a critic of the CHIPS program, is set to take office. The subsidies are part of a series, including a $7.86 billion award to Intel (INTC) and $6.6 billion to Taiwan Semiconductor Manufacturing’s U.S. operations, illustrating a concerted effort to revitalize and secure America’s tech infrastructure.
This investment in Micron Technology is not only about economic incentives but also about positioning the U.S. as a leader in technology production, ensuring that critical technologies remain within national borders, thereby safeguarding both economic and security interests.
Price Action: As of press time, Micron is changing hands at $99.88, down 2.87% intraday.
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