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.
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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.
The large expenditure "will safeguard US national security and supply chain resilience as demand for memory develops," according to Micron, which anticipates starting production in the second part of the decade.
The company's anticipated $150 billion (approximately Rs. 11,92,600 crore) global investment in manufacturing and R&D over the following ten years includes spending on US production.
Although the corporation maintains facilities in Boise, Idaho, and Northern Virginia, the majority of its business is conducted in Asia, particularly in Taiwan, Singapore, and Japan, where operating expenses are lower.
According to Micron, up to 40,000 new American jobs might be created. "In the coming weeks," more information about the US expansion ambitions will be revealed.
"This legislation will allow Micron to increase domestic memory manufacture," 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.
