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U.S.-based chip-manufacturer Micron Technology, Inc. MU has plans to invest up to $100 billion over the next 20 years to construct a new mega fab in Clay, New York, with the first phase investment of $20 billion planned by the end of this decade.
The new factory will increase the domestic supply of leading-edge memory and create nearly 50,000 New York jobs, including approximately 9,000 high-paying Micron jobs, it said in a statement.
Read Also: How To Buy Micron Technology, Inc. (MU) Stock
Strategy: Micron’s New York mega fab is part of its strategy to gradually increase American-made leading-edge DRAM production to 40% of the company’s global output over the next decade. The company said site preparation work will start in 2023, construction will begin in 2024 and production output will ramp in the latter half of the decade.
Micron said the $5.5 billion in incentives from the state of New York alongside anticipated federal grants and tax credits from the CHIPS and Science Act are critical to support hiring and capital investment.
Why It Matters: The move comes after President Joe Biden signed the CHIPS and Science Act in August, which provides $52.7 billion in subsidies for U.S. semiconductor production and research to increase competitiveness with China, reported Reuters.
Brookfield Infrastructure is investing up to $15 billion for a 49% stake in Intel Corporation’s INTC manufacturing expansion at its Ocotillo campus in Chandler, Arizona.
Price Action: Shares of Micron closed 4.3% higher at $53.96 on Tuesday, before rising 0.06% in extended trading, according to data from Benzinga Pro.
The stock has outperformed the market over the past 10 years on an annualized basis.
Read Next: Micron Technology Earnings Were ‘Materially Worse’ Than Expected: 6 Analysts Comment
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Image and article originally from www.benzinga.com. Read the original article here.