Micron to Receive Over 8 Trillion Won in U.S. Semiconductor Subsidies... Announcement Expected as Early as Next Week

It has been reported that Micron Technology, a U.S. company competing with Samsung Electronics and SK Hynix in the memory semiconductor sector, is expected to receive subsidies exceeding 8 trillion won under the U.S. CHIPS and Science Act (CSA).

[Image source=Reuters Yonhap News]

Bloomberg News reported on the 17th (local time), citing multiple anonymous sources, that Micron is expected to receive subsidies of more than $6 billion (approximately 8.28 trillion won) from the U.S. Department of Commerce. The Department of Commerce is expected to officially announce the support amount as early as next week. It remains unclear whether Micron will receive additional support such as loan assistance as part of the package beyond the subsidies.

The CSA, considered one of the major legislative achievements of the Joe Biden administration, aims to encourage semiconductor investment within the United States by providing a total of $52.7 billion over five years, including $39 billion in semiconductor production subsidies and $13.2 billion in research and development (R&D) support for companies building production facilities domestically. Low-interest loans and loan guarantees are also available up to $75 billion.

The $6 billion subsidy reported for Micron is less than the subsidies previously disclosed for Intel, Taiwan's TSMC, and Samsung Electronics. The U.S. government announced on the 15th a subsidy plan of $6.4 billion (approximately 8.832 trillion won) for Samsung Electronics. The support amounts for Intel and TSMC were higher, at $8.5 billion (11.73 trillion won) and $6.6 billion (approximately 9.108 trillion won), respectively.

Micron had earlier announced plans to build four semiconductor plants in New York State and one in Idaho. Additionally, Sanjay Mehrotra, CEO of Micron, has emphasized that sufficient subsidies and incentives are necessary compared to overseas expansions for these investments to be carried out. Micron is also conducting projects in China, India, and Japan.

However, the U.S. Department of Commerce has stated that it will prioritize funding for projects capable of production by the late 2020s. Bloomberg News pointed out, based on Micron’s disclosures, that only two of the four planned plants in New York State meet this condition, noting that "the other two will not be operational until 2041." A source said, "This likely means that subsidies for Micron will only support two plants in New York State."