Micron Invests $300 Billion in U.S. to Boost Domestic Chip Production

Micron Technology, a prominent memory chip manufacturer, has announced a significant investment of 300 billion in the United States. This move is part of a broader initiative by the U.S. government to bolster domestic manufacturing and reduce dependence on foreign suppliers. The additional investment will elevate Micron's total investment in U.S. manufacturing and research and development to approximately 2000 billion, creating around 90,000 direct and indirect jobs.

The funds will be allocated with approximately 1500 billion designated for domestic manufacturing and 500 billion for research and development. The primary focus of this investment will be the construction of a second advanced memory factory in Boise, Idaho, and the expansion of an existing manufacturing facility in Manassas, Virginia. Micron aims to meet anticipated market demand, maintain market share, and support its goal of producing 40% of its DRAM chips in the United States. DRAM is a widely used type of storage chip.

This announcement comes as the U.S. government, under the leadership of Trump, has been pushing for increased domestic manufacturing and positioning the country as a leader in artificial intelligence (AI). The Trump administration has been seeking to boost domestic manufacturing and has threatened to impose new tariffs on semiconductors. In April, the U.S. government initiated a "national security investigation" into semiconductor imports, widely seen as a prelude to imposing tariffs on semiconductors.

The additional investment by Micron is part of a broader strategy to strengthen the U.S. semiconductor supply chain. In December, the U.S. Department of Commerce approved a nearly 62 billion government subsidy to support Micron's semiconductor production in New York and Idaho. This subsidy is one of the largest provided under the 527 billion CHIPS and Science Act of 2022, which aims to bolster the domestic semiconductor industry.

The Trump administration has been vocal about its opposition to providing subsidies to attract semiconductor companies to the U.S., preferring instead to use tariffs to incentivize companies to return to the U.S. However, the current administration has indicated that it is re-negotiating some of the subsidies provided during the Biden administration, suggesting that some subsidies may be canceled or reduced.