Sanjay Mehrota, CEO, Micron
Scott Mlyn | CNBC
Micron announced Tuesday it will invest $40 billion between now and 2030 to make chips in the US. This investment is supported by grants and credits from the Science and CHIPS Act, which President Joe Biden will sign on Tuesday.
Micron says it will create up to 40,000 jobs in the US, including 5,000 high-paying engineering and operations roles. The company said the additional capacity would bring its share of US memory chip production from 2% to 10%. Micron is expected to begin production in the second half of the decade.
Specific plans for the investment will be announced in a few weeks, Micron added.
The Science and CHIPS Act is intended to revive the domestic chip industry and strengthen America’s competitiveness with China. The US produces about 10% of the world’s semiconductor supply but otherwise depends on East Asia for 75% of global production.
The CHIPS Act also prompted Qualcomm to commit to an additional $4.2 billion in spending on chips from its GlobalFoundries facility in New York. Qualcomm, the world’s leading wireless semiconductor company, has announced plans to increase semiconductor production in the US by 50% over the next five years.
Likewise, Intel in January investment plan announcement up to $100 billion to build a new chip complex in Ohio, starting with an initial commitment of $20 billion. The entire scope of the project is also relies mainly on funding from the CHIPS Act.