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Majority Leader Schumer’s CHIPS And Science Law Delivers Historic $6.1 Billion Grant For Micron

Washington, D.C. – Today, Majority Leader Chuck Schumer (D-NY) announced Micron has reached a $6.1 billion preliminary memorandum of terms (PMT) funding agreement with the U.S. Department of Commerce for Central New York  and Idaho combined. The funding comes directly from the CHIPS and Science law, which Leader Schumer helped author and led to passage, and will spur Micron’s plans to construct state-of-the-art fabs in New York and Idaho, invest over $100 billion over the next two decades, and create tens of thousands of direct manufacturing, construction, and supply chain jobs.

“This monumental and historic federal investment will power and propel Micron to bring its transformational $100+ billion mega-fab project to life, creating an estimated 50,000 jobs in New York alone and further propelling America’s manufacturing resurgence,” said Leader Schumer. “With billions in federal investment from my CHIPS & Science law, we are taking the next steps to get shovels in the ground to rebuild industrial regions of the country like Upstate NY with good-paying, middle class jobs and make chips here at home that will power America’s future. From smartphones to AI to our nation’s most sensitive defense technologies, the memory chips Micron makes are in nearly every product of our modern economy. But, as the pandemic showed, when we don’t shore up our supply chains and make these chips in America, we can be left vulnerable, prices can skyrocket, and our national security can be threatened.  This investment will build a more secure economy for the entire country and strengthen our national security. Without the federal incentives funded by the CHIPS and Science law I led to passage, including the Commerce CHIPS funding and the investment tax credit, Micron and other major chips projects in New York and around the country would not be happening at the transformational scale that is occurring.”  

Leader Schumer funded the CHIPS Incentives Program and created the CHIPS investment tax credit in his CHIPS & Science law to help bring the semiconductor industry back from overseas and spur companies to make major investments in America to strengthen our national security, shore up our domestic supply chains, and ensure the U.S. leads the world in innovation and manufacturing. The Commerce Department has received more than 630 statements of interest and more than 180 pre-applications and full applications for funding through the CHIPS program. Earlier this year, Leader Schumer announced that GlobalFoundries in the Capital Region was awarded $1.5 billion in direct grant funding under his CHIPS  & Science law, with an additional $1.6 billion in loans available, that will spur a $12.5 billion public-private investment over the next ten plus years to expand and construct a second, new state-of-the-art computer chip factory in Malta, NY.  Other semiconductor companies, including Intel, TSMC, and Samsung, have announced over $240 billion in investments to bring semiconductor manufacturing back to America, and the country is well on its way to producing roughly 20% of the world’s leading-edge chips by the end of the decade.

The PMT outlines key terms for Micron’s CHIPS agreement. To finalize the federal CHIPS agreement, the Commerce Department will now begin a comprehensive due diligence process on the proposed project and other information contained in the application. After satisfactory completion of the due diligence phase, the Commerce Department will finalize the PMT.