The Biden administration has agreed to provide $6.1 billion in subsidies to Micron Technology for the construction of a vast complex of computer chip facilities in Syracuse's northern suburbs, according to US Sen. Chuck Schumer and a top Biden administration official.
Micron may also receive federal financing as part of the preliminary, non-binding agreement with the US Department of Commerce, Schumer said Wednesday night, AP News reported.
Micron Technology Set to Receive $6.1 Billion From Biden Administration
A senior administration official said that President Joe Biden plans to announce the agreement next week.
The transaction is the most significant for Micron since it committed in October 2022 to invest up to $100 billion in the construction of a mega-complex of four chip production units in Clay. It would be the most significant single private investment in New York history.
Micron's grant and loan package would be the fourth largest given to any company applying for funding under the $52 billion federal CHIPS and Science Act.
According to sources familiar with the matter, the award, which has still to be approved, might be revealed as early as next week.
Micron's Chip Plants in New York, Idaho
Micron, located in Boise, Idaho, is constructing plants in New York and its home state. After the tentative deal is announced, the firm will do months of due diligence before receiving the funds in tranches based on project-specific benchmarks.
According to Bloomberg, the Chips Act allocated $39 billion for direct grants, as well as $75 billion in loans and bank guarantees, to reinvigorate American chipmaking after decades of transferring manufacturing to Asia.
So far, six preliminary awards have been announced, including multibillion-dollar packages for Intel Corp., Taiwan Semiconductor Manufacturing Co., and South Korea's Samsung Electronics Co. Commerce Secretary Gina Raimondo has stated that the agency intends to allocate approximately $28 billion of the grant funding to innovative projects.
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