The US government has announced another multi-billion dollar subsidy for a semiconductor manufacturer. The American company Micron will receive a maximum of 6.1 billion dollars (5.7 billion euros) for new factories in the states of New York and Idaho, the White House said on Thursday. The company could also receive up to $7.5 billion from the US Department of Commerce in the form of loans.
Micron plans to invest $50 billion in the U.S. by 2030, the White House said. Another $125 billion could be added over the next twenty years. The projects in New York and Idaho are “the largest private investments ever” in the two states, President Joe Biden’s administration added. The new production facilities are expected to immediately create 70,000 new jobs.
“Many new high-tech jobs”
“We welcome these significant investments in the United States, which will create many new high-tech jobs,” Micron CEO Sanjay Mehrotra said in a Commerce Department statement. It’s about moving “the development and production of the most advanced semiconductors” to the US and thereby “protecting our economic and national security,” Commerce Secretary Gina Raimondo said.
Chips are needed to power everything from smartphones to fighter jets. They are also becoming increasingly important for the automotive industry and especially for electric vehicles. The global chip industry is dominated by a few companies, including Taiwan-based TSMC and California-based Nvidia.
So far dependent on Asia
The US is highly dependent on Asia, especially for semiconductor production. Biden wants to counter this with the so-called Chips and Science Act: the law provides support worth $52.7 billion to companies that move production to the US.
South Korean manufacturer Samsung has already received a $6.4 billion commitment for a new factory in Texas. TSMC wants to build a third factory in Arizona and will receive $6.6 billion from Washington for this.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
