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Micron Announces 20-Year Plan To Build $100 Billion U.S. Fab Complex

Now that the U.S. government has finally settled the issue of whether to provide subsidies to attract semiconductor fabs to set up in the United States, those fabs and chipmakers are starting to hammer out domestic investment plans. . Of all the proposals revealed so far, Micron’s new proposal is the most ambitious.Last week, the company announced plans to build the largest chip production facility in U.S. history in central New York State. The plan spans his 20 years of construction and upgrades, and in the 2040s he expects Micron to reach a total value of about $100 billion by the time it is completed.

Micron’s new site near Clay, New York will not only be Micron’s largest campus ever built, it will also be the largest chip fab in the United States.The new Micron campus will use state-of-the-art process technology to produce DRAM, and eventually he is expected to include four of his 600,000ft2 (55,700 meters2) clean room. That’s about eight times the clean room space in GlobalFoundries’ Fab 8, just to provide some context. The new fab complex will complement Micron’s already announced campus near Boise, Idaho, which is expected to be operational from 2025. Both sites will help Micron reach its goal of producing 40% of its DRAM in the United States over the next decade.

According to Micron, its investment in its New York production facility will total $100 billion when fully built, creating approximately 9,000 Micron jobs and approximately 41,000 indirect jobs. The first phase of the project, located in Clay, New York, is expected to cost a total of about $20 billion over the next 10 years. The DRAM maker expects to receive $5.5 billion in incentives from the state of New York over the life of the project, as well as federal grants and tax credits from CHIPS and the Science Act. Additionally, Micron and the state of New York will invest $500 million in community and workforce development over the next 20 years.

Micron plans to begin site preparation work in 2023 and begin construction in 2024. Facility ramp-up is expected to begin in the second half of the decade, based on industry demand for DRAM devices.

Broadly speaking, eye-poppingly priced fab complexes are fast becoming the norm in the fab industry, and the costs to build and equip across generations of fabs continue to balloon. Micron isn’t the first company to plan a 12-digit price tag for its new fab complex (Intel’s new fab complex in Ohio is officially expected to cost around $100 billion when completed). ), Micron’s announcement is notable in that it differs from Intel and TSMC. , Micron is not a logic producer. So the company’s $100 billion plan is entirely for memory, a relatively bold move for a conservative company competing in the tech industry’s traditional commodity market.

Bearing in mind that the new fab in Onondaga County, New York, is scheduled to go live in the second half of the decade, it’s time for Micro to reveal what process technology and what types of products it will produce. It’s too early. The only thing the company says is that this will be a state-of-the-art facility using EUV-capable production nodes to produce advanced DRAM products (think 64Gb DDR5 chips, DDR6 DRAM, next-gen HBM, etc.) about it.

Sanjay Melotra, Micron’s Chief Executive Officer, said: “This historic, cutting-edge memory in the heart of New York, his megafab, will strengthen America’s technological leadership, economic and national security, and drive America’s innovation and competitiveness for decades to come. It will bring benefits beyond the semiconductor industry.”

sauce: micron

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