The U.S. Department of Commerce has finalized a subsidy of more than $6.1 billion for memory chip maker Micron Technology (NASDAQ:MU) to support the construction of several domestic semiconductor facilities, according to a White House statement on Tuesday.
The investment, unchanged from the amount originally announced in April, marks one of the largest government awards to chip companies under the U.S. CHIPS and Science Act.
It will fund factory projects in New York and Idaho and is expected to create at least 20,000 jobs by the end of the decade.
The commerce department and Micron have also agreed to preliminary terms for an additional investment of $275 million to expand the chipmaker’s facility in Manassas, Virginia, which primarily manufactures chips sold in the automotive, networking and industrial markets.
The additional investment will help “onshore a critical technology relied upon by our defense industry, automotive sector, and national security community,” the White House said.
President Joe Biden’s administration has doubled down on fueling domestic semiconductor production, seeking to reduce reliance on China and Taiwan. The U.S. has finalized a series of subsidies, including a $7.86 billion award for Intel (NASDAQ:INTC) and $6.6 billion for Taiwan Semiconductor Manufacturing’s (NYSE:TSM) U.S. unit.
MU shares began Tuesday down $2.34, or 2.3%, to $100.48.
