US government commits funding to $2bn expansion of Micron chip facility in Virginia
11 December 2024
Aerial view of Micron semiconductor plant in Boise, Idaho, US (Image: knowlesgallery via AdobeStock - stock.adobe.com)
The US Department of Commerce has signed a non-binding deal with chip firm Micron Technology for up to $275 million funding to expand and modernise a chip facility in Manassas, Virginia.
The proposed project would see Micron onshore the production of its 1-alpha technology to the Manassas facility, significantly increasing monthly wafer output.
The total expected capital expenditure for the project will be $2 billion over the next several years.
News of the preliminary memorandum of terms (PMT) to support the facility鈥檚 expansion came alongside a wider award from the US Department of Commerce to Micron of up to $6.2bn in direct funding under the CHIPS Incentives Program鈥檚 Funding Opportunity for Commercial Fabrication Facilities.
This will support a planned programme of investment by Micron of up to $100 billion in New York and $25 billion in Idaho over the next two decades. The aim is for the US to grow its share of advanced memory manufactured in the country from less than 2% today to 10% by 2035,
The US Department of Commerce said a more reliable domestic supply of DRAM chips would strengthen US economic resilience. DRAM chips are used in advanced technologies like personal computing, industrial, automotive, wireless communication, and artificial intelligence.
Micron鈥檚 DRAM chips also power the company鈥檚 performance memory, known as High-Bandwidth Memory (HBM), which is critical for enabling new AI models.
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