Micron Technology poised to get over US$6 billion in chips grants in announcement next week
- The 2022 Chips and Science Act set aside US$39 billion for direct grants, as well as loans and loan guarantees worth US$75 billion, to revitalise chip-making in US
- After the preliminary agreement is announced, Micron would enter months of due diligence and then receive the money in tranches tied to project-specific benchmarks
Micron Technology, the largest US maker of memory chips, is poised to get US$6.1 billion in grants from the Commerce Department to help pay for domestic factory projects, part of an effort to bring semiconductor production back to American soil.
The award, which is not yet finalised, is slated to be revealed next week, according to people familiar with the matter. Micron, like Intel and Taiwan Semiconductor Manufacturing Co (TSMC), will also accept loans as part of its award package, said two of the people, who asked not to identified because the deliberations are private. The total value of those loans remains unclear.
President Joe Biden is scheduled to travel on April 25 to Syracuse, New York, as part of the announcement, the people said. Boise, Idaho-based Micron is building factories near Syracuse, as well as in its home state.
Representatives for Micron, the Commerce Department and the White House declined to comment.
The 2022 Chips and Science Act set aside US$39 billion for direct grants, as well as loans and loan guarantees worth US$75 billion, to revitalise American chip-making after decades of production shifting to Asia.