Micron Technology, a key player in the semiconductor industry, is taking strategic measures to strengthen its domestic production of critical technological components. The company’s expansion plans in the United States are aimed at countering challenges such as China’s restrictions on U.S. technologies and a decline in the smartphone market. Currently, only three companies, Micron Technology, South Korea’s Samsung, and SK Hynix, account for 90% of the world’s dynamic random-access memory (DRAM) chip production.
Investment in Domestic Chip Fabrication
Micron Technology, the sole U.S.-based manufacturer of DRAM chips, has announced a significant $15 billion investment to establish a chip fabrication plant in Boise, Idaho. The company aims to commence advanced memory production at this facility by 2026. This massive investment comes as Micron celebrates its 45th anniversary, marking a major milestone in its history.
Increasing U.S. Share of DRAM Production
In addition to its expansion plans in Idaho, Micron is planning to invest an impressive $100 billion over the next two decades to construct four 600,000 square foot fabs in upstate New York. The objective behind this move is to boost the U.S. share of DRAM production from a mere 2% to approximately 15%.
Federal Support through the CHIPS Act
Micron’s expansion efforts align with the federal CHIPS and Science Act, which offers financial incentives to encourage domestic semiconductor production and enhance the United States’ competitiveness in the industry. Senate Majority Leader Chuck Schumer, a co-sponsor of the bill, emphasizes the importance of reclaiming leadership in this sector to preserve the country’s position as a global economic powerhouse.
Addressing Manufacturing Challenges
Micron is determined to tackle the cost challenges associated with manufacturing in the United States, where expenses are typically 20% higher than in Asian countries. The company intends to leverage government incentives and establish closer supply chains. Furthermore, with the establishment of the Center for Advanced Semiconductor Technologies and substantial investments in semiconductor fabrication, Micron aims to make significant contributions to the growth of the semiconductor industry in the state and the Northeast Defense Technology Hub.
The source of the article is from the blog lokale-komercyjne.pl