US lawmakers have approved billions of dollars to support the onshoring of semiconductor production. Micron is set to receive up to $6.1 billion in grants from the US government to help build its semiconductor plants in New York and Idaho, as announced by President Joe Biden during his visit to Syracuse, New York.

The move is part of Washington’s efforts to bring semiconductor production back to the United States, aiming to maintain its lead in the chip industry, particularly in artificial intelligence development, for national security reasons and to stay competitive against China.

The investment will enable Micron to reintroduce cutting-edge memory chip manufacturing to the US after a 20-year hiatus, according to Chuck Schumer, the Senate majority leader from New York.

The $6.1 billion funding falls under the CHIPS and Science Act, a comprehensive funding and tax incentives package passed by Congress in 2022 to enhance research and semiconductor production in the US.

The White House confirmed that the funds will support the construction of two facilities in Clay, New York, and one in Boise, Idaho, where Micron’s headquarters is located.

Additionally, the US Commerce Department is poised to provide up to $7.5 billion in direct investments to support the semiconductor industry, further solidifying the country’s position in the global chip market.