U.S. Government Boosts Domestic Semiconductor Production with $6.1 Billion Funding for Micron Technology

U.S. semiconductor manufacturer Micron Technology (MU) is due to receive a whopping $6.1 billion funding package from the U.S. government. The funding is intended for the construction of three semiconductor fabrication facilities, as part of the U.S. current administration's ongoing mission to increase domestic production of semiconductors. Through the CHIPS and Science Act, Micron will be building these chips plants in the states of Idaho and New York, as announced by the administration on Thursday. The government projects that these investments will generate over 70,000 new jobs across these regions. In 2022, Micron had unveiled plans to establish a "megafab" complex in Clay, N.Y., intended to be the biggest chip fabrication plant in the U.S. This latest funding will also contribute to high-volume manufacturing developments within Micron's existing premises in Boise, Idaho. As per the White House, Micron's initiatives will "mark the return of advanced memory manufacturing to the U.S. soil after more than 2 decades." These memory chips play a crucial role in data and program storage across computers and data storage devices. The present administration has been liberal in granting numerous billions in loans and funds over the recent months with the intent to enhance advanced chip manufacturing on the domestic front. Intel (INTC), which will be disclosing quarterly results shortly, is the biggest recipient till now, having been granted $8.5 billion last month for construction and expansion of facilities located in Arizona, Ohio, New Mexico, and Oregon. Several other recipients of the CHIPS Act payouts include Samsung, which procured $6.4 billion this month for expanding its manufacturing facilities in Texas, along with BAE Systems (BAESY), Microchip Technology (MCHP), and GlobalFoundries (GFS).