Micron Technology announced on Monday the details of a planned $2.2 billion expansion in Northern Virginia that will play a key role in the national effort to boost domestic semiconductor manufacturing.
“This expansion strengthens America’s supply chain security while bringing hundreds of new jobs in one of the world’s most critical industries,” said Virginia Gov. Glenn Youngkin, one of the players in the bipartisan political push toward addressing the deficiencies in domestic production of semiconductor chips.
Earlier this month, the Biden administration’s Department of Commerce confirmed that it had signed a Preliminary Memorandum of Terms for $275 million in CHIPS and Science Act funding to go toward the project, which will onshore Micron’s 1-alpha technology to Micron Technology’s Manassas facility.
“Micron is uniquely positioned to bring state-of-the-present memory manufacturing to the U.S., strengthening the country’s technology leadership and fostering advanced innovation,” Micron President and CEO Sanjay Mehrotra said. “Micron’s investments in domestic semiconductor manufacturing capabilities, supported by the bipartisan CHIPS Act and the incentives offered by the Commonwealth of Virginia and the City of Manassas, will help drive economic growth and ensure that the U.S. remains at the forefront of technological advancements.”
The CHIPS and Science Act, which was authored by U.S. Sen. Mark Warner, D-Va., and was signed into law by President Biden in 2022, is an effort 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.
“Micron’s decision to expand its facility in Virginia is a direct result of the historic investments made possible by the CHIPS Act, which I proudly authored,” Warner said. “This expansion strengthens our nation’s semiconductor supply chain, creates good-paying jobs, and reaffirms Virginia’s leadership in the future of American manufacturing.”
The legacy DRAM memory chips that will be made in Northern Virginia are important components for the automotive and industrial markets.
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 dangerously short in production.
“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, create jobs, and strengthen our supply chains. I’ll continue working to boost domestic manufacturing across Virginia and our country.”
“Micron’s multi-billion dollar investment is big news for the entire Manassas community, creating new good-paying jobs and further strengthening Virginia as the major hub for American chip production,” Northern Virginia Congresswoman Jennifer Wexton said.
“In Congress, I was proud to support the bipartisan CHIPS and Science Act, which delivered historic federal investments to reinvigorate the American semiconductor industry and help companies like Micron bring manufacturing and jobs home to places like Manassas. I’m excited to see Micron continue to grow and expand here in Northern Virginia and contribute to the economic development in our local communities,” Wexton said.
In addition to the federal funding, Micron Technology will be eligible to receive a Virginia Major Employment and Investment Project Approval Commission-approved special appropriation of up to $70 million to go toward the overall project cost.
“I am pleased the MEI Commission could collaborate with our federal, state, and local partners to ensure Micron committed to expanding its semiconductor operations in the Commonwealth,” said State Sen. Louise Lucas, the chair of the Major Employment and Investment Project Approval Commission.
“Micron has long been one of Virginia’s premier semiconductor facilities. It is exciting to see them continue to grow, and we thank Micron for its long-term commitment to the Commonwealth,” Lucas said.
The Manassas project is expected to create more than 400 manufacturing jobs and up to 2,700 community jobs at the peak of the project.
“Manassas has long been a hub for manufacturing, defense, professional and technical services, healthcare, and other high wage businesses,” Manassas Mayor Michelle Davis-Younger said. “This announcement underscores the impact of global leaders like Micron, BAE, and Lockheed Martin, as well as emerging companies like RapidFlight and Electra.aero, on the city’s thriving workforce and economic growth.”
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Chris Graham
