Micron to Get $6.1 Billion Grants to Develop Semiconductor Fabs in US

The U.S. Commerce Department is set to provide a grant of USD 6.1 billion to Micron Technology Inc. Micron Technology, one of the largest semiconductor companies in the world, will use this grant to build a massive DRAM fab that will make memory chips on an EUV-based process technology. 

This facility is projected to be one of the largest semiconductor plants in the world. Additionally, Micron announced plans in 2022 to build a $100 billion fab complex consisting of four modules in New York State over the next 20 years. This complex is expected to produce DRAM, 3D NAND, and novel types of memory that may not even exist yet.

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The new fab is expected to come online by the end of the decade. This development is part of Micron's broader expansion plans, both in the U.S. and worldwide. In the U.S., Micron had already broken ground on its USD 15 billion EUV DRAM fab near its headquarters in Boise, Idaho, back in late 2022. 

The grant to Micron is contingent upon securing additional financial incentives, including investment tax credits and local subsidies. These incentives are necessary to offset the higher costs of domestic production compared to overseas operations. The funding arrangement also includes unspecified loans, adding a layer of financial complexity to the package.

The U.S. government's focus remains on strengthening the domestic supply chain and reducing dependency on foreign semiconductor production. This grant to Micron is a significant step in that direction. It follows several other funding initiatives announced by President Biden, including nearly USD 20 billion in loans and grants for Intel and a USD 1.5 billion grant to GlobalFoundries.

The announcement of this grant underscores the national importance of the semiconductor industry. It is expected to be formally announced by President Joe Biden during an upcoming visit to Syracuse, New York. This funding from the CHIPS and Science Act will help lock in 50,000 jobs, a USD 100 billion investment, and millions of dollars in community benefits.

Significance of DRAM Fabrication Plants

DRAM Fabs, short for DRAM Fabrication plants, are specialized factories where DRAM (Dynamic Random Access Memory) chips are manufactured. These chips are a type of semiconductor memory that is used in various digital products like computers, workstations, servers, and more.

Integrated Circuits: DRAM Fabs are where integrated circuits, also known as microchips, are made.

Manufacturers: They are operated by Integrated Device Manufacturers (IDMs) who design and manufacture ICs in-house and may also manufacture designs from design-only (fabless firms), or by pure play foundries who manufacture designs from fabless companies and do not design their own ICs.

Process Technology Node: This refers to the size of the smallest features that the facility is capable of etching onto the wafers.

Check out our blog on .A Comprehensive Guide to Deposition Techniques in Semiconductor Fabrication.

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