President Joe Biden will sign new law that allows for the exploitation of grants and credits. By the end of the decade, US semiconductor company Micron aims to invest $40 billion (approximately Rs. 3,18,000 crore) in domestic chip production.
The CHIPS and Science Act will be signed by Biden and Micron President and CEO Sanjay Mehrotra at the White House. Mehrotra called the measure "an critical step in solidifying American semiconductor supremacy for decades to come."
The pandemic's effects on production and shipping have resulted in a recent global scarcity of computer chips, which has had a negative impact on economic growth. The parts are essential for defence systems, 5G technologies, smartphones, and automobiles.
The White House applauded Micron's announcement and mentioned Qualcomm and GlobalFoundries' new cooperation, which involves an investment of $4.2 billion (approximately Rs. 33,400 crore) to manufacture chips in an expansion of GlobalFoundries' upstate New York factory.
The White House issued a statement saying that the measure "will also ensure the United States maintains and enhances its scientific and technical edge."
The measure includes tax credits to encourage investment as well as funds for research and development in the tens of billions of dollars.
Micron said it expects to begin production in the second half of the decade and the massive investment "will ensure US national security and supply chain resilience as demand for memory grows."
The spending on US production is part of the company's planned $150 billion (roughly Rs. 11,92,600 crore) global investment in manufacturing and R&D over the next decade.
The company has plants in Boise, Idaho and Northern Virginia, but most of the operation is in Asian countries such as Japan, Singapore and Taiwan, where costs are lower.
Micron said it expects to create up to 40,000 new American jobs. More details on the US expansion plans will be announced "in the coming weeks."
"This legislation will enable Micron to grow domestic production of memory from less than 2 percent to up to 10 percent of the global market in the next decade, making the US home to the most advanced memory manufacturing and R&D in the world," Mehrotra said.
