Micron is now assured of receiving $6.1 billion in federal grants that will allow it to move ahead with a $100 billion plan to build a microchip plant in the Town of Clay.
Micron and federal officials have been negotiating the details of the $6.1 billion deal since April. The Commerce Department announced final approval of funding through the CHIPS and Science Law on Tuesday. U.S. Sen. Chuck Schumer (D-NY) said it was important to lock in the funds before President-elect Donald Trump, who’s been critical of the CHIPS legislation, gets into office on January 20.
"I wanted to make sure under a new administration it couldn't be pulled back," Schumer said. "It cannot now. The money is right there in the bank."
Federal funds are an integral part of Micron’s plan to build a $100 billion memory chip fab complex at the White Pine Commerce Park, bringing an anticipated 50,000 jobs with it. There are strings attached to the money; Micron has to meet hiring and building deadlines and meet promises like providing day-care services. Most of the funds will be funneled to central New York while other grants will pay for an expansion of Micron facilities in Boise, Idaho. Schumer, who championed the CHIPS Act as a way to bring chip manufacturing to U.S. shores, said locking up this funding is a big milestone.
"I feel really good," Schumer said. "I mean, you know, I've spent so much time helping Upstate New York, but never did I think it would be on this grand scale that it's transformational."
Onondaga County Executive Ryan McMahon, who helped in the negotiations to bring Micron to central New York, released a statement calling the funding a big step forward for the region:
“Today’s announcement is further proof of the undeniable momentum and progress taking place in our community and across central New York. With this agreement, the Micron project has taken a huge and significant step forward while also solidifying Onondaga County as the hub for memory technology semiconductor manufacturing in the world!”
Gov. Kathy Hochul also weighed in releasing a statement calling the investments a move toward a greater economy.
"Growing up in Western New York, I’ve seen how the decline of manufacturing hollowed out previously vibrant communities across upstate," the statement said. "We’re reversing that trend because of smart, targeted investments that will create tens of thousands of jobs and billions in economic activity."
Micron's construction in Clay is expected to begin in the fall of 2025.
