Micron Technology Inc. (NASDAQ: MU), an Idaho-based microchip manufacturer with a big plant in Manassas, said Wednesday it would invest more than $150 billion over the next decade into its manufacturing and research.
The company said the investment may include potential new factories in the U.S., but warned that domestic expansion is only appetizing if government funding and refundable tax credits are made available. Micron cited U.S. microchip manufacturing costs being 35% to 45% higher than "lower-cost markets" in its appeal for economic incentives.
"We look forward to working with governments around the world, including in the U.S. where CHIPS funding and the FABS Act would open the door to new industry investments, as we consider sites to support future expansion,” Micron President and CEO Sanjay Mehrotra said in a statement, mentioning federal legislation to incentivize and support semiconductor manufacturing.
The news of the investment comes a few weeks after the city of Manassas preapproved the sale to Micron of 18.12 acres of city-owned land, a tract adjacent to the company's existing facility at 9600 Godwin Drive. Micron has the option to purchase the property, currently the site of community athletics fields, at any point in the next three years at an above-market cost of $14.1 million. Currently, the ballfields have an assessed value of $6.2 million, according to city records.
Manassas lawmakers saw the measure as a way to deepen the city's relationship with the company and expressed hopes Micron would move forward on the option sooner rather than later, according to InsideNoVa.
In 2018, Micron announced plans to invest $3 billion to expand production at its Manassas plant and to create 1,100 new jobs by 2030. That project grew the facility to about 750,000 square feet. That deal included more than $70 million in performance-based grants from the state in addition to other incentives, financing and infrastructure from Manassas.
Micron's new capital investment plan and growth in Manassas come as the company has stepped into a brighter spotlight during a global shortage in semiconductors, which are used in everything from personal computers to cellphones, automobiles, refrigerators and even LED lightbulbs.
The Covid-19 pandemic created run on new electronic equipment and data center upgrades in response to widespread remote work and online learning. That created a need for more microchips. As a result, microchip manufacturing — already a little unsteady before the pandemic — couldn't keep up. Executives at chip companies have said it will be several years before enough new manufacturing is online to meet the demand.
“The growth of the data economy is driving increased customer demand for memory and storage,” Manish Bhatia, Micron's executive vice president of global operations, said in a statement. “Leading-edge memory manufacturing at scale requires production of advanced semiconductor technology that is pushing the laws of physics, and our markets demand cost-competitive operations. Sustained government support is essential for Micron to ensure a resilient supply chain and reinforce technology leadership for the long term.”
Micron, whose fiscal year 2021 ended Sept. 2, reported $27.71 billion in revenue for the year, a 22.9% increase over the prior fiscal year. Net income increased 118% to $5.86 billion.
