Micron Technology Inc (MU.O) said on Wednesday that it is exploring constructing a new memory plant in the United States, but that it will require state and federal incentives to offset costs that are higher than those in Asia.
The company, situated in Boise, Idaho, is the only American manufacturer of both types of memory chips, competing against Samsung Electronics Co Ltd (005930. KS) and SK Hynix (000660. KS) of South Korea, as well as Kioxia, Toshiba’s old memory chip arm, from Japan.
Micron’s Idaho headquarters features a pilot manufacturing line for exploring new technologies, as well as a factory in Virginia that produces unique high-reliability chips for autos. However, Taiwan, Japan, and Singapore produce the company’s most modern memory chips, which are used in products such as PCs, phones, and data centers.
Micron’s chief commercial officer, Sumit Sadana, told Reuters that memory chips account for around 30% of the worldwide semiconductor market, but only 2% is manufactured in the United States.
Sadana stated that the corporation has not decided on a location for its next advanced chip facility. Tools like ASML Holdings’ (ASML.AS) extreme ultraviolet (EUV) lithography machines, which may cost more than $100 million each, will be needed in the plants.
According to Sadana, Micron aims to spend up to $12 billion in capital expenditures and $3 billion on research and development this year, and up to $150 billion over the following ten years.
Micron estimates that memory manufacturing costs in the United States are 45 percent higher than in Asia, according to Sadana.
Micron’s decision, he said, will be influenced by whether or not the United States implements factory subsidies and investment tax credits for pricey tools, both of which are currently being considered in Congress. He stated, “We need these policies to be stable and nonpartisan in nature.”
