Micron to Build $15 Billion Semiconductor Plant in Idaho
Micron Technology announced Thursday it will build a $15 billion computer chip fabrication plant near its headquarters in Boise, the latest in a string of new semiconductor factories being built around the U.S.
Micron, one of the world’s largest semiconductor companies and only U.S.-based memory chip producer, said the Boise project is part of its intention to spend more than $150 billion globally over the next decade in manufacturing and research.
Founded in 1978 by Ward Parkinson, Joe Parkinson, Doug Pitman, and Dennis Wilson, Micron is one of Idaho’s largest employers. It manufactures dynamic random-access memory, flash memory, and USB flash drives. The company has numerous chip manufacturing plants around the world, including in Taiwan.
This is the first of Micron’s multiple planned U.S. investments following the passage of the CHIPS and Science Act.
Micron’s President and CEO, Sanjay Mehrotra, has said that the investment became possible due to last month’s passage of the CHIPS and Science ACT of 2022, a USD 280 billion bill aimed at bolstering U.S. competitiveness against China. The CHIPS law sets aside USD 52 billion for bolstering the semiconductor industry. Biden has called the Micron announcement a big win for America.
This will be the first new memory manufacturing fab built in the US in 20 years. It would ensure the domestic supply of leading-edge memory required for market segments, fueled by the increasing adoption of 5G and Artificial Intelligence. The investment is likely to create 17,000 jobs by the end of the decade.
Earlier this summer, Micron applied for tax exemptions for a massive chip plant that would be built near Austin, Texas, in eight phases and reportedly would cost more than $40 billion.
Officials in New York are also courting Micron for a factory near Syracuse. A source familiar with those efforts said the plant Micron plans in Boise is not the same facility being considered in New York.
Micron Technology announced early Thursday morning it would build a $15 billion manufacturing plant in Boise. BoiseDev first reported on the possibility last November.
Micron says the facility, which will bring back manufacturing capacity to the Boise facility on Federal Way, is the first new fabrication plant built in the U.S. in 20 years. The company makes computer chips for an array of devices, including computers and cell phones.
“Our new leading-edge memory manufacturing fab will fuel U.S. technology leadership, ensuring a reliable domestic supply of semiconductors that is critical to economic and national security,” Micron CEO Sanja Mehrotra wrote in a statement. “We also appreciate the support of Governor (Brad) Little and his administration, Idaho state legislators, Mayor (Lauren) McLean, and our partners at Idaho Power. We are proud of the positive impact this investment will have on the community and our more than 6,000 employees located in Boise, Micron’s headquarters and the epicenter of our innovation for over 40 years.”
Micron said its U.S. expansions could add as many as 2,000 “direct” jobs, as well as additional jobs with other companies to support Micron.
Micron says it will make additional U.S. investments and called this its first development. The company pushed hard for the CHIPS and Science Act, which provides federal tax support for companies to build chipmaking capacity in the U.S. Micron also won incentives from the Idaho Legislature, and, as BoiseDev reported, has a permanent cap on its property tax liability in the state.
Last week, filings the company made for possible expansion near Austin, TX became public, but Micron was quick to say the move was solely to protect its future options. It’s unclear if expansion in Texas might also happen in the future.
Micron started in the basement of a dental office in Boise in 1978 and quickly grew into one of the area’s largest employers. In the 1990s and 2000s, chipmaking manufacturing moved from Boise to overseas locations. The company still maintains its corporate headquarters and a research and development facility here.
Now, the company will bring some of that capacity back to the City of Trees with the new facility. While it didn’t detail what it would build or how, it said the $15 billion Boise investment would roll out over the next decade. Last month, Micron filed with the City of Boise to build one of the largest office buildings in the state at its Boise campus.
Micron owns significant land holdings adjacent to its current facility. The JR Simplot Co. and related entities also own land in the area, and the two companies have worked closely on projects over the years.
“This is a once-in-a-generation investment in Boise from a home-grown company that is critical to the economic vitality of our community, our state, and our nation,” McLean said. “I’m so proud of the partnership it has taken to get to this point and excited for the opportunities continued collaboration brings.”
“Today’s announcement by Micron is another big win for America,” President Biden said in a statement. “In our future, we will make EVs, chips, fiber optics, and other critical components here in America, and we will have an economy built from the bottom up and middle out.
