The U.S. Department of Commerce has signed a non-binding Preliminary Memorandum of Terms for $275 million in CHIPS and Science Act funding to go to Micron Technology to modernize and expand its facility in Northern Virginia.
The funding will go toward a $2 billion project that will onshore Micron’s 1-alpha technology to its Manassas facility, with the investment aimed at advancing U.S. supply chain resiliency because the legacy DRAM memory chips that would be made in Virginia are important components for the automotive and industrial markets.
The Manassas project would be expected to create more than 400 manufacturing jobs and up to 2,700 community jobs at the peak of the project.
The CHIPS and Science Act was passed to boost domestic chips manufacturing and prevent chip shortages by offering private companies a tax credit for investments in domestic chips manufacturing facilities and making $52 billion in funding available to produce more chips in America.
Chips or semiconductors are required in nearly everything with a switch – from cars, computers, and phones to televisions, LED lightbulbs, and washing machines.
The U.S. has been a global leader in semiconductor design, research, and development, but it has fallen short in production.
“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’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,” Micron President and CEO Sanjay Mehrotra said.
“I’m thrilled that Micron was selected to receive significant federal funding from the bipartisan CHIPS and Science Act we passed to expand its chips manufacturing facility in Manassas,” U.S. Sen. Tim Kaine, D-Va., said. “Ensuring the U.S. can produce chips is critical for the U.S.’s economic competitiveness and national security. This investment will allow us to make more chips here at home, support jobs, and strengthen our supply chains. I’ll continue working to boost domestic manufacturing across Virginia and our country.”
“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,” U.S. Sen. Mark Warner, D-Va., said.
“Today’s announcement to bring new federal CHIPS funding to Manassas is big news for our efforts to expand local manufacturing opportunities which will bring new, good-paying science and tech jobs home to our district,” said Northern Virginia Congresswoman Jennifer Wexton. “I was proud to support the CHIPS and Science Act in Congress and help deliver a historic federal investment in American semiconductor production to strengthen our global competitiveness and bring down costs. I applaud Micron’s continued outstanding work in this important field, and look forward to seeing the new benefits that CHIPS funding will bring to businesses and our local community.”
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Chris Graham
