Micron to invest $2.17 billion to expand U.S.-based memory production

Micron plans to invest $2.17 billion to expand its semiconductor facility in Manassas, Virginia, creating 340 jobs and boosting its U.S. semiconductor production capacity, said Governor Glenn Youngkin. The project will upgrade the facility to produce specialty DRAM memory for industrial, automotive, aerospace, and defense applications.

Earlier this month, Micron announced that it had gotten $275 million in federal funding under the CHIPS and Science Act to upgrade its long-lifecycle DRAM fab in Manassas, Virginia, and move production of DRAM for the automotive industry from Taiwan to the United States. Back then, the company said that its fab in Virginia employs 1,230 people and that the expansion will create 950 construction jobs and more than 400 manufacturing jobs. 

Micron could also receive up to $70 million in special funding approved by the MEI Commission. This funding depends on the company investing over $2.1 billion and creating 340 new jobs, and the final approval is required from the Virginia General Assembly.

Micron hasn't mentioned how it plans to upgrade the fab and how much additional manufacturing capacity it will add to the production facility. Typically, long-lifecycle DRAM for industrial, automotive, aerospace, and defense applications is produced in relatively small volumes, so the specialty memory facilities are not large. Since specialty DRAM is not made using leading-edge process technologies, Micron does not need to buy ultra-expensive EUV litho tools for the fab. Yet, for $275 million, it can buy plenty of DUV lithography systems for $30 million to $50 million.

Senators Mark Warner and Tim Kaine praised the CHIPS Act for facilitating this investment, highlighting its importance for national security, economic competitiveness, and strengthening domestic supply chains. Both emphasized the critical role of chip manufacturing in securing the American technological future.

"As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring state-of-the-present memory manufacturing to the U.S., strengthening the country's technology leadership and fostering advanced innovation,” said Micron President and CEO Sanjay Mehrotra. "[...]Micron is grateful for Governor Glenn Youngkin and the General Assembly’s continued support as we work to produce long-lifecycle DRAM products in Virginia to meet the future memory demand for U.S. defense, aerospace, automotive, and industrial customers."