Chip Maker Commits Up to $100B for US Manufacturing Site | So Good News

New York state has secured a commitment from a leading semiconductor maker to build a $100 billion manufacturing plant near Syracuse, a major coup for the state and one of the first projects under new federal incentives to make computer chips in the United States.

Idaho, Boise-based chipmaker Micron announced Tuesday plans to build a large complex in the city of Clay. Over 20 years, the company planned to build a “clean room,” the dust-free environment needed to produce computer chips the size of nearly 40 football fields. Micron says it will be the largest such plant in the country.

Gov. Kathy Hochul, a Democrat up for election next month, said the development is “the start of something that could be a massive transformation for our state’s economic future.”

US Senate Majority Leader Chuck Schumer, Democrat of New York, also praised the news.

“This project is a significant turning point for a region that has lost manufacturing jobs for decades,” he said in a press release. “Microon’s investment will make New York’s semiconductor corridor a key engine powering our economy, providing ‘Made in New York’ microchips for everything from electric cars, 5G and defense technologies to personal computers and smartphones.

The transition to electric cars; The announcement comes as states work together to secure a new wave of manufacturing plants linked to the transition to electric vehicles, along with protectionist trade policies and new federal subsidies for domestic technology production.

For example, Intel in Ohio; It announced in January that it would spend $20 billion to build two chip factories near Columbus.

Many states are offering big tax breaks and other incentives to attract electric car factories and battery factories.

As automakers add more electronics to their cars, they also become more dependent on chipmakers. In early 2020, it cut orders for high-tech parts during the pandemic, a move that has come back to haunt them in the following months as demand for new vehicles rises. Automakers can’t keep up because they’re waiting for chips made overseas.

President Biden has pushed to boost high-tech manufacturing in the United States this summer, including billions of dollars in incentives for computer chip makers.

The president praised Micron on Tuesday for its plans in New York. “I say to those who doubt that America will dominate the industries of the future; You should never bet on the American people,” Biden said in a statement. “Today is another victory for America. Because of my business plan, there is a huge new investment in America.”

Micron is federal; State and local incentives enticed factories to be built in upstate New York.

Empire State Development, a government agency, has offered Micron up to $5.5 billion in incentives if the company meets certain employment and environmental goals. Hochul, who signed what is known in August as the “Green CHIPS” law, legalizes state incentives. It gives semiconductor manufacturers up to 7.5% of wages and salaries. Up to 5% of project capital expenditure and 8% of research and development costs will be available.

New York State is providing $200 million to improve roads and other infrastructure near the Micron campus, among other benefits. Onondaga County to make water level upgrades; Agreed to fund a research center with Syracuse University and provide workforce development grants.

Development also depends on sweeteners Congress approves as part of the $54.2 billion CHIPs and Science Act of 2022. The law includes $39.4 billion in subsidies to encourage companies to manufacture chips domestically.

Micron executives attended the signing of the CHIPS Act at the White House, where the company pledged to spend $40 billion on chip manufacturing in the US thanks to the new law.

State and federal incentives require Micron to comply with certain environmental and workforce standards. For example, the new facility will use electricity entirely from renewable sources and its buildings will meet at least LEED Gold standards.

Builders use project labor agreements when they build factories and are paid the federal minimum wage. The company allocates 30% of its construction budget to women. It is planned to be used for work by economically disadvantaged and economically disadvantaged individuals owned by minorities or disabled veterans.

Micron’s announcement caps a long story for local officials in Clay, who first designated the factory site for chip production in 1999.