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Micron Technology to invest up to $100 billion to build megafab in New York

06 Oct 2022

Sustainably built and operated, leading-edge memory fab would create nearly 50,000 jobs.

Micron Technology, one of the world’s largest semiconductor companies and the only U.S.-based manufacturer of memory, has announced plans to build what it calls “the largest semiconductor fabrication facility in the history of the United States”.

The new megafab will increase the U.S. domestic supply of leading-edge memory and create nearly 50,000 New York jobs, including approximately 9,000 high-paying jobs. Micron intends to invest up to $100 billion over the next 20-plus years to construct a new megafab in Clay, New York, with the first phase investment of $20 billion planned by the end of this decade. This represents the largest private investment in New York state history.

Micron’s investment in Onondaga County, New York, will complement the company’s previously announced high-volume manufacturing fab in Boise, Idaho. Micron will design, build and operate the facility in accordance with its sustainability goals. The site could eventually include four 600,000 square foot clean rooms, for a total of 2.4 million square feet of clean room space – the size of approximately 40 U.S. football fields.

Micron’s New York megafab is part of its strategy to gradually increase American-made leading-edge DRAM production to 40% of the company’s global output over the next decade. Site preparation work will start in 2023, construction will begin in 2024 and production output will ramp in the latter half of the decade, gradually increasing in line with industry demand trends.

“I am grateful to President Biden and his Administration for making the CHIPS and Science Act a priority, to Senator Schumer and a bipartisan coalition in Congress for passing the legislation, and to Governor Hochul and County Executive McMahon for the local and state partnerships that made this investment possible. Micron will leverage the diverse, highly educated and skilled talent in New York as we look to build our workforce in the Empire State,” said Micron President and CEO Sanjay Mehrotra.

“This historic leading-edge memory megafab in Central New York will deliver benefits beyond the semiconductor industry by strengthening U.S. technology leadership as well as economic and national security, driving American innovation and competitiveness for decades to come.”

CHIPS Act benefits

The $5.5 billion in incentives from the state of New York over the life of the project alongside anticipated federal grants and tax credits from the CHIPS and Science Act are critical to support hiring and capital investment. In addition, the Town of Clay and Onondaga County are providing key infrastructure support for Micron’s new leading-edge semiconductor facility.

Micron stated that it is “excited to be building this new megafab in New York, making the Empire State the location of the largest leading-edge memory site in the U.S.” The company selected the Onondaga County, New York, site based on its multiple advantages including leading higher education institutions, access to talent traditionally underrepresented in technology jobs and a significant military population aligned with Micron’s commitment to veteran hiring.

It also offers availability of water and clean, reliable power to enable a project of this scale while achieving our long-term environmental goals. The state has a long history of semiconductor development and manufacturing, providing promising opportunities to collaborate on R&D initiatives with organizations like the Albany NanoTech Complex and the U.S. Air Force Research Laboratory.

Senate Majority Leader Charles Schumer commented, “After years of work, it’s official—Micron is coming to Central New York! With the CHIPS and Science bill, I wrote and championed as the fuse, Micron’s $100 billion investment in Upstate New York will fundamentally transform the region into a global hub for manufacturing and bring tens of thousands of good-paying high-tech and construction jobs to Central New York.

“Micron’s investment will make New York’s semiconductor corridor into a major engine powering our economy and will supply ‘Made in New York’ microchips to everything from electric vehicles, 5G, and defense technology to personal computers and smartphones.

Schumer added, “This announcement is the result of my long fight to bring manufacturing back to Upstate New York. The bottom line is that without the CHIPS and Science legislation, Micron would have decided to build its mega-fab overseas.”

‘Historic investment’

Micron and the state of New York are also announcing a historic $500 million investment in community and workforce development with a focus on disadvantaged populations over the duration of the project. Micron will invest $250 million over the next 20-plus years as part of the company’s commitment to the Green CHIPS Community Investment Fund. An additional $250 million is expected to be invested, with $100 million from New York and $150 million from local, other state and national partners.

New York State Governor Kathy Hochul commented, “Micron’s $100 billion investment in New York marks the start of something transformative in scale and possibility for our state’s economic future. Thanks to our State Green CHIPS legislation, the federal CHIPS and Science Act, and extraordinary partnerships with business, labor, and local and federal leaders, this project will do exactly that.”

LightTrans International GmbHHyperion Opticsart Photonics GmbHCHROMA TECHNOLOGY CORP.Diverse Optics Inc.AlluxaSPECTROGON AB
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