To Build New Plant in New York State
Micron Technology announced on Oct. 4 that it would invest up to US$100 billion for 20 years to come in order to build in Clay, New York the largest semiconductor plant in the history of the United States.
This reshoring from Asia is to benefit from the CHIPS and Science Act and better compete in the memory chip market. At present, Micron Technology is producing products mainly in Japan, Taiwan and Singapore, with its R&D center located in the United States.
The U.S. government is likely to provide a subsidy of up to US$3 billion along with a 25 percent tax credit. The State of New York is planning to provide US$5.5 billion, too.
An increasing number of semiconductor companies are expected to increase investment in the United States, while South Korea is failing to improve its investment environment. A bill to that end was tabled in August but is still pending in the National Assembly. SK Hynix has tried for 17 months to build a manufacturing complex in Yongin City with nearby Yeoju City refusing to give its approval regarding water-related facility construction.