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Micron plans to invest $40 bn on US chip manufacturing

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Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="The logo of MICROM (The Chinese words read: Micron Technology Taiwan) near Inotera Memories Inc in Taoyuan City, northern Taiwan. EPA/DAVID CHANG" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2022/tvpatrol/08/10/micron.jpg"/><figcaption>The logo of MICROM (The Chinese words read: Micron Technology Taiwan) near Inotera Memories Inc in Taoyuan City, northern Taiwan. <em>EPA/DAVID CHANG</em></figcaption></figure></div><p>WASHINGTON - Capitalizing on grants and credits in new legislation President Joe Biden will sign, US semiconductor firm Micron announced plans to invest $40 billion on domestic chip production by the end of the decade.</p><p>Micron President and CEO Sanjay Mehrotra, who will join Biden at the White House for the signing of the CHIPS and Science Act, called the legislation &quot;an important step toward solidifying American semiconductor leadership for decades to come.&quot;</p><p>A global shortage of computer chips in recent months caused by production and transportation snags due to the pandemic has been a significant drag on economic activity. The components are vital for everything from smartphones to cars to 5G technology, as well as defense systems.</p><p>The White House hailed the Micron announcement and noted that Qualcomm and GlobalFoundries are announcing a new partnership that includes $4.2 billion to manufacture chips in an expansion of GlobalFoundries&#x27; upstate New York facility.</p><p>&quot;The law will also ensure the United States maintains and advances its scientific and technological edge,&quot; the White House said in a statement.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/03/21/chip-shortage-to-last-through-2022-semiconductors-exec">Chip shortage to last through 2022, says Arm chief executive</a></li>	<li><a href="https://news.abs-cbn.com/business/02/10/21/chip-shortage-puts-the-brakes-on-automakers">Chip shortage puts the brakes on automakers</a></li>	<li><a href="https://news.abs-cbn.com/news/07/19/22/depleted-supply-of-beep-cards-anticipated-due-to-global-chip-shortage">Depleted supply of Beep cards anticipated due to global chip shortage</a></li></ul><p>The legislation provides tens of billions of dollars in funding for research and development, as well as tax credits to offer incentives for investment.</p><p>Micron said it expects to begin production in the second half of the decade and the massive investment &quot;will ensure US national security and supply chain resilience as demand for memory grows.&quot;</p><p>The spending on US production is part of the company&#x27;s planned $150 billion global investment in manufacturing and R&amp;D over the next decade.</p><p>The company has plants in Boise, Idaho and Northern Virginia, but most of the operation is in Asian countries such as Japan, Singapore and Taiwan, where costs are lower.</p><p>Micron said it expects to create up to 40,000 new American jobs. More details on the US expansion plans will be announced &quot;in the coming weeks.&quot;</p><p>&quot;This legislation will enable Micron to grow domestic production of memory from less than 2 percent to up to 10 percent of the global market in the next decade, making the US home to the most advanced memory manufacturing and R&amp;D in the world,&quot; Mehrotra said.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/02/18/21/perfect-storm-phones-consoles-could-get-pricier-as-chip-crisis-bites">&#x27;Perfect storm&#x27;: phones, consoles could get pricier as chip crisis bites</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1431880" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

A global shortage of computer chips in recent months caused by production and transportation snags due to the pandemic has been a significant drag on economic activity