Micron unveils New York plant as US-China semiconductor war heats up
- The announcement comes soon after the US passed the Chips Act to boost the local industry’s competitiveness
- Micron was lured to the area with help from a generous set of federal, state and local incentives, including up to US$5.5 billion in tax credits
Micron, one of the world’s largest chip manufacturers, said on Tuesday it would open a semiconductor plant in upstate New York, promising a long-term investment of up to US$100 billion and a plant that could bring 50,000 jobs to the state.
The company was lured to the Syracuse area with help from a generous set of federal, state and local incentives, including up to US$5.5 billion in state tax credits over 20 years.
The announcement comes after Senate Majority Leader Charles Schumer had pushed for Idaho-based Micron and the company’s CEO, Sanjay Mehrotra, to consider upstate New York for its factory. It also comes months after Congress passed the US$280 billion Chips and Science Act, which set aside US$52 billion to bolster the semiconductor industry.
“An investment of this scale in the US is simply not possible without significant government and community support,” Mehrotra said at the announcement.
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In addition to tax credits tied to investment and job creation, New York has pledged US$200 million for road and infrastructure improvements where the plant is being built in suburban Clay and US$100 million to a “community benefit” fund. The state also will review supplying the operation with low-cost power.