WASHINGTON (AP) – The Biden administration has reached an agreement to provide $6.1 billion in federal aid to Micron Technology.
WASHINGTON (AP) – The Biden administration has reached an agreement to provide $6.1 billion in government support to Micron Technology, which makes cutting-edge memory computer chips in New York and Idaho.
Senate Majority Leader Chuck Schumer of New York, who personally lobbied Micron to eventually build four chip factories in Syracuse, said in an interview Wednesday that the announcement is a sign that Democrats are considering how to revive manufacturing. He pointed out that it shows voters what the government is trying to do. sector.
“This will be the largest memory chip factory in the United States,” Schumer said. “For the Syracuse area, this is probably the best thing to happen since the Erie Canal.”
A comparison with the 1825 infrastructure project that connected the Great Lakes and the Atlantic Ocean shows not only the national security risks but also the magnitude of the economic impact.
Including government support, Micron plans to invest $100 billion in upstate New York over the next 20 years. The investment is estimated to create 9,000 direct jobs and 40,000 construction jobs. Micron also announced plans to build a $15 billion memory chip factory in its hometown of Boise, Idaho.
The funding will come from the 2022 CHIPS and Science Act, which provides government support for new and expanded facilities being developed by chip companies such as Intel, TSMC, Samsung, and GlobalFoundries.
The legislation included $52 billion to support the domestic semiconductor industry, reducing the risk that chip shortages experienced during the pandemic would negatively impact the U.S. economy and national security.
The Democratic administration has set a goal of manufacturing 20% of the world's advanced chips in the United States and is restricting the flow of chips to China.
A senior Biden administration official confirmed the agreement with Micron on condition of anonymity to discuss the deal before it is formally announced.
President Joe Biden was in Pittsburgh on Wednesday to discuss the importance of computer chips that power everything from weapons to artificial intelligence to home appliances like refrigerators.
Biden noted that his former president and election-year rival, Republican Donald Trump, was less aggressive in revitalizing the sector and curbing access to Chinese chips.
“Despite all the tough talk about China, I never thought my predecessor would do something like that,” Biden told a group of steelworkers.
President Trump told supporters that China was “afraid” of him because he imposed tariffs on China to support U.S. factory jobs. Biden has kept tariffs in place and on Wednesday signaled plans to expand them on steel and aluminum.
“I took a stand against Communist China like no other administration in history,” President Trump told supporters at a rally in Pennsylvania on Saturday.
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