vzphotos/iStock Editorial via Getty Images
Micron Technology (NASDAQ:MU) will open up its checkbook and spend up to $100B on a massive new chipmaking facility in upstate New York in another sign that new federal investments are spurring domestic investment in the semiconductor industry.
According to a report from the New York Times, Micron (MU) said Tuesday that its new project in Clay, New York, will involve 20 years of investments and construction in the chipmaking complex. Micron's (MU) investment comes less than two months after President Joe Biden signed the CHIPS and Science Act of 2022, which provides $52B in federal grants and subsidies for chip companies to build more domestic factories and facilities.
Micron (MU) Chief Executive Sanjay Mehrotra said that the CHIPS Act was directly responsible for his company's New York factory plans. According to the Times, Mehrotra said that were it not for the CHIPS Act, "we would not be here today."
Micron (MU) is the latest semiconductor leader to commit to building more chipmaking facilities in the U.S. In September, Intel (INTC) broke ground on a new manufacturing location in Columbus, Ohio, where the company is expected to invest $20B in new operations in the coming years.
Investors responded positively to Micron's (MU) plans by sending the company's shares up by 4.3%. Along with Micron (MU), Intel (INTC) and Advanced Micro Devices (AMD) each climbed almost 3% and Qualcomm (QCOM) shares rose more than 4%.
Tuesday's chip gains added to a positive day for the sector on Monday that was led by strength from numerous chip-equipment and storage company stocks.