Micron was awarded $6.1 billion in federal funding under the CHIPS and Science Law some of which will go toward the $100 billion mega-fab project in Clay. Funding will also go toward projects in Idaho, where Micron is based.
U.S. Sen. Chuck Schumer (D-NY) announced the preliminary memorandum of terms (PMT) funding agreement Wednesday night, saying Micron's Clay project would not have been possible without the CHIPS funding.
“This is one of the largest single direct federal investments in Central NY’s history," Schumer said. "A whopping $6.1 billion from my CHIPS and Science Law is coming to ensure Micron builds its cutting-edge chip-manufacturing fabs right here in both Central New York and Idaho. This is a landmark day for New York and for America, which will manufacture the advanced memory chips that power the world’s economy to secure its economic primacy and national security.”
President Joe Biden plans to visit Syracuse next Thursday, April 25, to officially announce the award, according to a report by Bloomberg.
The CHIPS and Science Act, passed in 2022, allows the government to invest $52 billion toward revitalizing the manufacturing of chips in the U.S.
Micron plans to build up to four manufacturing plants at White Pine Commerce Park in Clay over the next 20 years. The tech company announced it had picked central New York in 2022.
"We are rebuilding the economy of central New York and all of Upstate one magical microchip at a time," Schumer said.
Schumer said the New York portion of the CHIPS money will go to support the construction of the first two fabs by the end of the decade.
“To all those who have had their doubts, believe it, Micron is here, Micron is real," Schumer said. "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 America’s future.”
Gov. Kathy Hochul celebrated the announcement, saying the largest private investment in American history is on its way to central New York.
"New federal funding from President Biden’s 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. "As the first Governor from Upstate New York in more than a century, I’m proud to have helped secure this transformative deal along with our federal partners. We’re going to revitalize our Upstate economy — one microchip at a time.”
Rep. Brandon Williams (R-Sennett) also celebrated the announcement.
“Here we go! Now we just need the permits to start shoveling and building our future," Williams said. "After countless meetings, hearings, inquiries, and advocacy, we’re getting things moving for NY-22. Congratulations to Ryan McMahon, Senator Schumer, the folks at CenterState, and many others who have dedicated so much to make this happen.”
Schumer said memory chip manufacturing is critical to economy and national security and said the Micron project will affect economies across the I-90 corridor from ancillary benefits.
"They're going to be many subcontractors and so many suppliers across upstate New York with this huge investment that just about every region will gain," Schumer said. "The federal government is putting its money where its mouth is. America's future will have Syracuse and upstate New York as its beating heart thanks to the CHIP award."
The PMT outlines the terms of Micron's project and will need to be finalized by the commerce department after the completion of a due diligence phase.
This is the second CHIPS agreement in New York. Earlier this year GlobalFoundries was awarded $1.5 billion.
