Micron Technology May Receive $6 Bn Support From US For Domestic Chip Production

The US Commerce Department plans to reward memory chip making giant Micron Technology with a grant of USD 6 billion to support the company's domestic chip making projects, according to a media report on Thursday.

The details of this monetary reward are yet to be finalised and can be notified in the upcoming week. However, in a statement, New York Governor Kathy Hochul indicated this grant. 

He emphasised America’s largest private historic investment is on its way to Central New York.

Additionally, Hochul expressed optimism at the new federal fundings from 'US President Joe Biden's CHIPS and Science Act', he said it will help to generate about 50,000 jobs and would facilitate a USD 100 billion investment along with other millions of dollars in community benefits.

Micron and the US Commerce Department have not officially disclosed the reward. However, the possibilities could not be denied considering the past few months in which Biden declared several funding initiatives, including nearly USD 20 billion loans and grants for Intel and a USD 1.5 billion grant to GlobalFoundries.

Meanwhile, with an outlay of about USD 52.7 billion, the CHIPS Act aims to reduce the US reliance on China and Taiwan and the goal is to boost domestic production.

Reports indicate that the US is making efforts to enhance its semiconductor market share which witnessed a significant drop, plummeting from 37 per cent in 1990 to a mere 12 per cent in 2020.