Micron to invest $40 billion in U.S. chip manufacturing

Micron announced Tuesday it will invest $40 billion between now and 2030 to manufacture chips in the U.S. The investment is supported by grants and credits from the CHIPS and Science Act, a bipartisan bill that President Joe Biden signed into law on Tuesday.

Micron said it will create up to 40,000 jobs in the U.S., including 5,000 highly paid technical and operational roles. The company said the additional capacity will bring the U.S. market share of memory chip production from 2 percent to 10 percent. Micron expects to begin production in the second half of the decade.

The specific plans of the investment will come in weeks, Micron added.

The CHIPS and Science Act aims to revitalize domestic chip manufacturing and boost U.S. competitiveness with China. The U.S. produces about 10% of the world's supply of semiconductors but otherwise relies on East Asia for 75% of the global production.

The CHIPS Act also spurred Qualcomm to commit to spending an additional $4.2 billion on chips from GlobalFoundries' New York facility. Qualcomm, the leading fabless semiconductor company in the world, announced plans to increase semiconductor production in the U.S. by 50 percent over the next five years.

Likewise, Intel in January announced plans to invest up to $100 billion to build a new chip complex in Ohio, starting with an initial $20 billion commitment. The full scope of the project also relies heavily on funding from the CHIPS Act.