Applications are already being accepted from individuals wishing to qualify for business grants under the US’s so-called “Chip Act,” and officials recently said about 460 companies have expressed interest in the program. Among them, as can be seen from official documentationIt turned out to be Micron Technology, which was preparing a large-scale business plan that promises a capital investment of $15 billion over the next ten years in just one Idaho location.
Micron Technology’s second project in upstate New York has an initial investment of $20 billion with a target of $100 billion over the next twenty years. New York State has agreed to provide approximately $5.5 billion in subsidies. However, if these are federal grants, the amount remains to be determined after reviewing Micron Technology’s application to participate in the applicable program. Ultimately, Micron wants to produce up to 40% of all DRAMs in the US, and the New York facility is playing a key role in this transformation.
It is important to understand that the country’s authorities are ready to allocate no more than $39 billion directly to all applicants over the next five years to build businesses in the United States. According to some estimates, the most important projects in this area for the US economy can receive grants ranging from 5% to 15% of the cost of capital, and not everyone will receive this money. Suffice it to say that just building two TSMC companies in Arizona will require up to $40 billion in costs, and Intel will need at least $50 billion by mid-decade to build its Arizona and TSMC companies Ohio will issue. a chip manufacturing facility in Texas that is estimated to cost $25 billion to build.
In other words, with any luck, Micron Technology may receive $5 billion in federal grants for its two projects in Idaho and New York. It’s possible that, in the absence of significant government funding and given the cyclical nature of changes in storage demand, Micron will at some point be forced to either revise its plans or alter the timeline for their implementation.