Chip production: Micron invests 100 billion US dollars

The development of self-sufficient chip production continues to make progress in the USA. Now the major manufacturer Micron has announced that it will build a new factory in New York State in 2023. The whole thing is to cost a total of 100 billion US dollars. In view of the currently rather poor economic situation of the company, this high investment sum is then nevertheless surprising.

The subsidies are flowing

After getting off to a rather sluggish start, the US CHIPS Act now seems to be picking up full steam. Just a few months ago, Intel complained that the money from the large funding pot was not flowing sufficiently. However, this does not seem to diminish the attractiveness of the funding program for chip factories in the USA. Micron, another well-known chip manufacturer, now wants to build a huge new factory. The company has chosen the state of New York for this purpose. In the tranquil Onondaga County, several factories are to be built in the next ten years.

For this the chip manufacturer would like to invest scarcely 100 billion US dollar like from one report of the news portal Bloomberg comes out. Originally, there was talk of only $40 billion. However, Micron is unlikely to be able to handle the whole thing on its own in view of poor sales figures. For this reason one helps oneself in the promotion pot and would like to skim several billion US dollar at subsidies from the treasury. The first step is a factory where DRAM chips are to be produced in the future. The construction, which is to cost just under 20 billion US dollars, is to begin next year.

Micron expands existing factory

Of course, the fabs in New York state are not a U.S. first for the company, which itself is based in the United States. Rather, a main fab already exists in Idaho. At the already existing location, Micron wants to build a new factory for chip production at a cost of almost 15 billion US dollars. Micron would like to expand its US production so that by the end of the 2020s almost 40 percent of all chips produced will be made in the USA. What sounds quite promising seems to be one of the last straws for Micron to keep its head above water. Thus, the growing competition from well-known companies such as TSMC and Intel ensures that fewer and fewer chips are bought from Micron.

Chip crisis could provide upside

Given the current semiconductor shortage, Micron’s investments also hold great opportunities. For example, the next few years could see an even further increase in demand for chips. In particular, the piecemeal weaning off of China as a chip supplier should ensure this. Since other companies such as Intel also want to build new factories in the USA, the question arises as to when the funding pot of the US CHIPS Act will be empty. The saying here is: First come, first served.