iNDICA NEWS BUREAU–
Indian American Sanjay Mehrotra-led Micron Technology, the Idaho-based producer of computer memory and computer data storage, is set to receive $6.1 billion in grants under the CHIPS Act from the U.S. Commerce Department to help pay for domestic chip factory projects, Democratic U.S. Senate Majority Leader Chuck Schumer said.
Schumer said, “This monumental and historic federal investment will power and propel Micron to bring its transformative $100+ billion four-fab project in central New York to life, creating an estimated 50,000 jobs.” According to the senator, Micron will use the funds to build a complex of chip plants in New York over the next 20 years.
Apart from Micron, South Korean giant Samsung is set to accelerate the expansion of its global semiconductor supply chain in the era of artificial intelligence (AI), following a subsidy of $6.4 billion from the US government and its extended investment plan.
Under the Biden Administration’s announcement, Samsung’s grants are aimed at bolstering US semiconductor production to 20 per cent of the world’s leading-edge chips by the end of the decade.
The funding will support Samsung Electronics’ chip production facilities in Taylor and Austin, Texas, alongside other research centres and packaging facilities, according to Yonhap news agency.
This positions Samsung Electronics as the third-largest beneficiary of the US CHIPS Act programme, following Intel with up to $8.5 billion in grants and $11 billion in loans, and Taiwan’s TSMC with up to $6.6 billion in grants and about $5 billion in loans.
At the same time, Samsung will increase its investment in its semiconductor plants in Texas to more than $40 billion from $17 billion.
Under the CHIPS Act, the Biden administration seeks to reduce reliance on China and Taiwan and supercharge its own lagging chip production. Semiconductor Industry Association (SIA), America’s share of global semiconductor manufacturing capacity fell from 37% in 1990 to 12% in 2020.
The Biden administration believes and lawmakers have warned that US dependence on chips manufactured in Taiwan by the world’s top contract chip manufacturer, TSMC is risky because China claims the self-governed island as its territory and has reserved the right to use force to retake it.
The Chips Act, passed in 2023, had allocated $52.6 billion to support the sector. Additionally, the Commerce Department has dedicated $28 billion for government subsidies for advanced chips manufacturing. According to government data, It has more than $70 billion in requests — and also has $75 billion in lending authority.
Indian American Sanjay Mehrotra-led Micron Technology to receive $6.1 billion in grants under CHIPS Act
