Micron (NASDAQ:MU) will spend up to $100 billion over at least the next two decades building a new computer chip factory in upstate New York, The New York Times reported on Tuesday.
The announcement comes after the passage of the CHIPS and Science Act of 2022, a federal law championed by Democratic Senate Majority Leader Chuck Schumer that allocates $52 billion to encourage more domestic semiconductor production. Micron’s CEO Sanjay Mehrotra credited the passage of the law for making the investment possible, according to the Times.
Shares of Micron were up more than 3% during premarket trading on Tuesday.
The risks in the U.S.’s reliance on foreign computer chip production became clear during the pandemic, as supply chain issues impacted a wide range of goods. Semiconductors are used in a variety of internet-connected devices, from cell phones to cars to medical devices.
When the CHIPS Act became law, it spurred a wave of investment announcements by semiconductor companies, including Micron, which at the time pledged $40 billion through 2030 for U.S. chip manufacturing, saying it would create up to 40,000 domestic jobs. Qualcomm (NASDAQ:QCOM) also committed to buy an additional $4.2 billion worth of chips from GlobalFoundries’ plant in New York. Intel had said its plans to invest up to $100 billion on chip manufacturing in Ohio relied heavily on the federal legislation.
The choice to put the factory in New York is a win for Schumer, who has led the chips investment push and advocated for his state to host new facilities.
MU shares climbed $1.54, or 3%, to $53.26.
