Micron Technology will invest $40 billion through the end of the decade to help build out memory manufacturing in the United States.
The investment is expected to result in 40,000 new American jobs, including approximately 5,000 high-paying technical and operational roles at Micron.
It will also bolster education, workforce training, transportation and several other services.
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The CHIPS and Science Act will support the move. It was signed into law Tuesday and allocates $52.7 billion for American semiconductor research, development, manufacturing and workforce development.
According to Micron President and CEO Sanjay Mehrotra, the CHIPS and Science Act is "an important step toward solidifying American semiconductor leadership for decades to come." Currently, the U.S. relies on East Asia for 75% of global production.
"This legislation will enable Micron to grow domestic production of memory from less than 2% to up to 10% of the global market in the next decade, making the U.S. home to the most advanced memory manufacturing and R & D in the world," he added.
Micron is finalizing its specific U.S. expansion plans and will share additional details in the coming weeks. The chipmaker expects to begin production in the second half of the decade.
Micron's investment is part of the company's previously announced commitment to invest more than $150 billion globally over the next decade in leading-edge memory manufacturing as well as research and development. It also comes as the company has warned of a "broadening of customer inventory adjustments" due to macroeconomic factors and supply chain constraints.
"Our expectations for CY22 industry bit demand growth for DRAM and NAND have declined since our June 30, 2022, earnings call, and we expect a challenging market environment in FQ4 22 and FQ1 23," the company said in a Securities and Exchange Commission filing Tuesday.
Micron expects fourth-quarter revenue to come in at or below the low end of its previously disclosed guidance range. It also expects "significant sequential declines in revenue and margins" and negative free cash flow in the first quarter of 2023.
In addition to Micron, Qualcomm and GlobalFoundries have announced a new partnership that includes $4.2 billion to manufacture chips in an expansion of GlobalFoundries’ upstate New York facility. Qualcomm plans to increase semiconductor production in the U.S. by up to 50% over the next five years.