Saturday, May 18th, 2024

US awards $13.6 billion to Micron, which has a chip plant in India

The US government has announced plans to provide Micron Technology with up to $6.14 billion in grants and $7.5 billion in loans to support the US chipmaker’s plans to build new factories as it tries to boost domestic semiconductor production. Does it.

Micron started construction of its Bharat Semiconductor plant in Sanand, Gujarat last year. The first ‘Make in India’ chip is due to arrive from the Rs 22,500 crore Micron Semiconductor plant in December.

The White House said the Commerce Department has reached a non-binding preliminary agreement with the company to provide proposed funding under the CHIPS and Science Act for the construction of two leading-edge dynamic random-access memory (DRAM) fabrication plants. . Development of a high-volume manufacturing fab in Clay, New York, and Boise, Idaho.

Micron plans to invest up to $125 billion in the two states over the next two decades to create a “leading-edge memory manufacturing ecosystem”, adding that the company’s total investment will create more than 70,000 jobs, including 20,000 direct. Includes construction and manufacturing jobs.

“With this proposed investment, we are working to fulfill one of the core objectives of President Biden’s CHIPS program – promoting the development and production of the most advanced memory semiconductor technology that can support our leadership on artificial intelligence. And important for our economic security. and national security,” said Commerce Secretary Gina Raimondo.

The announcement came after the department last Monday unveiled a plan to grant up to $6.4 billion to Samsung Electronics to support the South Korean tech giant’s chip-making investments in Central Texas, Yonhap news agency reports. .

Apart from Micron and Samsung, Intel, TSMC Arizona Corporation, GlobalFoundries, BAE Systems Plc’s US subsidiary and Microchip Technology Inc have also been selected as subsidy beneficiaries.

The CHIPS Act sets aside $39 billion in incentives to encourage chipmakers in the US to build, expand or modernize semiconductor facilities.

The Commerce Department plans to invest a total of about $28 billion in leading chipmakers like Samsung.

The Biden administration is pushing to fulfill its plan to produce about 20 percent of the world’s leading logic chips by 2030.

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