Micron Inks $6.1 Billion Grant Deal for U.S. Chip Factories -- WSJ

By Asa Fitch

Memory-chip maker Micron finalized a U.S. government grant of up to $6.1 billion to build factories in New York and Idaho, part of a long-running effort to foster domestic semiconductor manufacturing.

The money will support the company's overall vision of investing about $100 billion in New York and $25 billion in Idaho, where it is headquartered, according to the Department of Commerce, which is overseeing the grants.

Shares of Micron fell 49 cents to $102.33 in early trading.

The Chips Act in 2022 set aside $39 billion in funds for chip makers building U.S. factories. The bipartisan legislation responded to the industry's flight from the U.S. in recent decades in search of lower costs and better incentives overseas. Chip making is increasingly seen as vital to the economy and national security, since chips underpin artificial intelligence and are critical in cyber warfare, military weapons and electronics.

Micron, the only major U.S.-based memory manufacturer, agreed to initial terms for the grant in April. The Biden administration has been racing to finalize Chips Act grants before the Trump administration takes over next month.

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December 10, 2024 09:58 ET (14:58 GMT)

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