Micron reaches deal with federal government for $6.1 billion for projects in Clay, Idaho

Micron Technology (NASDAQ: MU), which has plans for a semiconductor campus in the town of Clay, has reached a $6.1 billion preliminary memorandum of terms (PMT) funding agreement with the U.S. Department of Commerce under the federal CHIPS & Science Law for projects in both the town of Clay and in Idaho. (Photo credit: Micron website)

CLAY, N.Y. — Micron Technology (NASDAQ: MU) has reached a $6.1 billion preliminary memorandum of terms (PMT) funding agreement with the U.S. Department of Commerce under the federal CHIPS & Science Law for projects in both the town of Clay and in Idaho. The PMT outlines key terms for Micron’s CHIPS agreement. To finalize the […]

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CLAY, N.Y. — Micron Technology (NASDAQ: MU) has reached a $6.1 billion preliminary memorandum of terms (PMT) funding agreement with the U.S. Department of Commerce under the federal CHIPS & Science Law for projects in both the town of Clay and in Idaho.

The PMT outlines key terms for Microns CHIPS agreement. To finalize the federal CHIPS agreement, the Commerce Department will now begin a due-diligence process on the proposed project and other information contained in the application, the office of U.S. Senate Majority Leader Charles Schumer (D–N.Y.) announced Wednesday evening.

After satisfactory completion of the due-diligence phase, the Commerce Department will finalize the PMT.

President Joseph Biden plans a visit to the Syracuse area on Thursday, April 25 to announce the funding, but the White House is still determining final details, the website of WSYR-TV NewsChannel 9 is reporting.

This federal funding is part of a planned public-private investment of more than $100 billion over the next two decades. It represents the largest private investment in New Yorks history, the Schumers office said.

The funding was made possible thanks to Schumers push to bring Micron to Central New York, his office noted.

To all those who have had their doubts, believe it, Micron is here, Micron is real. And now with billions in federal investment from my CHIPS & Science Law, we are taking the next steps to get shovels in the ground to transform the Syracuse region and all of Upstate into a global hub for the chips that will power Americas future, Schumer saidin the announcement. From smartphones to AI to our nations most sensitive defense technologies, the memory chips Micron makes are in nearly every product of our modern economy, but as the pandemic showed when we dont shore up our supply chains and make these chips in America it can skyrocket prices and threaten our national security. This investment will build a more secure economy for the entire country, with Micron in Central NY as its beating heart.

Micron announced its plans for a semiconductor-manufacturing campus at the White Pine Commerce Park in the town of Clay on Oct. 4, 2022.

Gov. Kathy Hochul reacted to the announcement in a statement late Wednesday night.

The largest private investment in American history is on its way to Central New York. New federal funding from President Bidens CHIPS and Science Act will help lock in 50,000 jobs, a $100 billion investment, and millions of dollars in community benefits, along with aid from the Green CHIPS Act we passed here in New York, Hochul said.

Eric Reinhardt: