Micron Technology is set to receive up to $275 million in federal funding to expand its manufacturing plant in Manassas, U.S. Sens. Mark Warner and Tim Kaine announced Tuesday.
The U.S. Department of Commerce has signed a preliminary, nonbinding agreement for the funding as part of the 2022 CHIPS and Science Act, legislation Warner co-wrote. The law provides $52 billion in subsidies for domestic companies researching and manufacturing semiconductors, and Tuesday’s award means Micron will move its manufacturing of dynamic random-access memory (DRAM) chips for automobiles from Taiwan to Virginia.
“I am proud to announce that $275 million should soon be headed to Virginia for Micron Technology to manufacture more cutting-edge semiconductors here in Virginia,” Warner said in a statement. “Making more of these chips in America will strengthen our national security and create jobs, which is why I pushed to pass this funding through Congress, why I am working with Micron and the Biden administration to secure this investment in Virginia, and why I’m going to be making the case to the incoming administration that we need to keep investing in domestic manufacturing of critical and emerging technologies like semiconductors.”
Warner says that the expansion of Micron’s Manassas facility would create nearly 950 construction jobs and more than 400 manufacturing jobs. Micron currently employs 1,230 people in Manassas.
The White House announced that the Department of Commerce signed a nonbinding preliminary memorandum of terms with Micron for the $275 million in proposed funding.
“As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the U.S., strengthening the country’s technology leadership and fostering advanced innovation,” Micron President and CEO Sanjay Mehrotra said in a statement. “Micron’s investments in domestic semiconductor manufacturing capabilities, supported by the bipartisan CHIPS Act, will help drive economic growth and ensure that the U.S. remains at the forefront of technological advancements.”
Although the timeline of the expansion has not been announced, the Idaho-based company expects to invest $2 billion in the project, and the state also will be pitching in about $46 million, approved by the Major Employment Investment Project Review Commission in May.
According to the Richmond Times-Dispatch, the state repackaged a $70 million economic development incentive package awarded to Micron in 2018 to provide $46 million in unspent financial incentives for the expansion of the Manassas plant.
The U.S. Department of Commerce awarded Micron up to $6.165 billion in direct funding to expand DRAM production in Idaho and New York, creating approximately 20,000 jobs and helping the U.S. grow its share of advanced memory manufacturing from less than 2% now to about 10% by 2035, according to the Biden administration.
Micron reported fiscal 2023 revenue of $15.54 billion, compared with $30.76 billion for the previous year.