Micron to Build Large-Scale Semiconductor Factory in New York... 143 Trillion Won Investment

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Micron, a U.S. semiconductor manufacturer, announced on the 4th (local time) that it will invest up to $100 billion (approximately 142.8 trillion KRW) to build a large-scale semiconductor factory in New York, according to the Wall Street Journal (WSJ).

According to the report, Micron stated that it will begin construction of the largest semiconductor factory in the U.S. starting in 2024 in the Clay area near Syracuse in upstate New York.

Sanjay Mehrotra, CEO of Micron, said, "Through Micron's factories in New York and Idaho, the company's domestic production share in the U.S. will expand from 10% to 40% within about 10 years." Last month, Micron announced it would invest $15 billion to build a new DRAM semiconductor factory in Idaho.

This decision aligns with the recent "Made in US" strategy of the Biden administration. The Chips and Science Act (CSA), previously signed by President Biden, includes provisions to provide subsidies to companies building semiconductor factories in the U.S. and offers a 25% tax credit benefit. WSJ reported, "As the U.S. government strives to revitalize domestic production of key components including semiconductors, investments in chip manufacturing facilities are increasing."

In addition to federal government subsidies, Micron stated it will receive incentives worth $5.5 billion from the state of New York.

Meanwhile, following this news, Micron's stock price was trading up 4.29% compared to the previous session in the New York stock market that afternoon.