Micron on Tuesday announced a $40 billion investment in semiconductor manufacturing in the United States, hours before Joe Biden signed the law to restart production of these components in the country. This sum is a “key element” of the global investment project of 150 billion dollars, which had been advanced by the American computer group in October, Micron said in a press release. The investment will be partly financed by “subsidies and tax credits provided” by a law, adopted on July 28 by the American Congress and which must be ratified Tuesday afternoon by American President Joe Biden.
The text plans to release 52 billion dollars in subsidies to revive the production of semiconductors in the United States, and tens of billions more for research and development. Micron CEO Sanjay Mehrotra, who will be present alongside Joe Biden for the signing, hailed “an important step toward solidifying American leadership in semiconductors for decades to come,” the statement said.
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The world has been facing, since the start of the pandemic, a shortage of semiconductors, essential components for a large number of products – computers, smartphones, vacuum cleaners, cars… The United States in particular has seen automobile production slow down. last year, causing car prices to skyrocket. Micron wants to invest these 40 billion dollars “by the end of the decade to build an advanced sector of semiconductors in several phases in the United States”, without specifying at this stage the location envisaged. The manufacturer “expects to begin production in the second half of the decade, increasing overall supply in line with the trajectory of industry demand.”
Micron thus claims “the largest (investment) in chip manufacturing in US history”, and indicates that this will ultimately create “up to 40,000 new American jobs, including approximately 5,000 technical roles. and highly paid operational staff within Micron”. “This legislation will allow Micron to grow domestic memory production from less than 2% to 10% of the global market over the next decade, making the United States the home of memory manufacturing and research and development. the most advanced in the world”, again greeted the CEO of Micron.
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In the meantime, Tuesday at the Stock Exchange, the title of Micron Technology fell by 4.69% while the group warned that its revenues in the 4th quarter could fall below its initial forecasts. The group foresees an immediate drop in demand for memories from its customers due to economic uncertainties, while the continuing supply difficulties are disrupting the management of companies’ stocks.
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