Micron (MU.US) starts construction of a US$15 billion chip plant expected to be operational by 2025
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Update time : 2022-09-14 11:34:55
Micron Technology (MU.US), the largest US manufacturer of memory chips, announced on Monday local time that it had broken ground on a $15 billion plant in Boise, Idaho, and the company's chief executive said that construction of another new US facility would be announced soon.
Sanjay Mehrotra, the company's chief executive, said:- "We are in the final stages of another large-scale production site, which will be announced in the coming weeks." Both plants will produce DRAM memory chips that are widely used in data centres, personal computers and other devices, and Mehrotra said that once operational, the US plant will account for 40 per cent of Micron's global DRAM production, up from the current 10 per cent. He also said the Boise plant is expected to be operational by 2025.
Micron stressed that this would be the first new memory chip plant to be built in the US in 20 years and that the plants would create more than 2,000 jobs by 2030. Since US President Joe Biden signed the Chip and Science Act, many chip companies have announced plans to manufacture chips in the US. Intel (INTC.US) broke ground last Friday on a $20 billion plant in Ohio to build cutting-edge processor chips. Although Micron used to make chips in Boise, where it got its start, mass production has shifted and the company has large production centres in Japan, Taiwan, China and Singapore. But the company's core R&D operations have remained in Boise, and the company's CEO said that combining manufacturing and R&D would help speed time to market. Mehrotra also stressed that the US investment does not mean the company will pull out of the Asian market. "This is not about divesting from manufacturing plants in other parts of the world or bringing manufacturing back to the US. It's about adding manufacturing plants." He said. Micron had previously said it would invest US$150 billion over the next 10 years, with US$40 billion in the U.S. Mehrotra said this included funding for research and development, which is increasing in cost as advanced technologies develop.
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