Micron in the US Applies for Semiconductor Plant Construction Incentives in Texas... "Not Confirmed"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Micron, a U.S. company competing in the memory semiconductor market alongside Samsung Electronics and SK Hynix, has applied for incentives from local authorities to build a new semiconductor factory worth $160 billion (approximately 214 trillion KRW) near Austin, Texas, Bloomberg reported on the 25th (local time).

Bloomberg cited an application submitted by Micron to local authorities earlier this month, stating that Micron plans to construct a new semiconductor factory near Lockhart, south of Austin. If Micron proceeds with this factory, the planned groundbreaking is scheduled for January next year, with full-scale mass production expected to begin in December 2026.

This application by Micron appears to be related to the expiration of Texas's tax incentive program, Chapter 313, at the end of this year. Bloomberg noted, "Texas is receiving the largest number of Chapter 313 applications ever this year," adding, "It is uncertain whether Micron will invest at the scale of $160 billion, and the company has declined to make direct comments on this matter."

Moira Wallen, a Micron spokesperson, told Bloomberg, "No final decisions have been made regarding the location, timing, or scale of expansion," adding, "This application submission is intended to secure (financial) options for potential future capacity expansions necessary to meet long-term memory demand."

Earlier in January, foreign media reported that Micron was reviewing sites for new semiconductor factories with an investment of $40 billion, considering Texas, Arizona, California, and North Carolina. Subsequently, on the 9th, Micron announced plans to build a state-of-the-art memory semiconductor manufacturing plant in the U.S. as part of a $40 billion investment plan over the next 10 years to expand domestic manufacturing capacity.

Samsung Electronics also submitted a similar application when negotiating potential investment locations for its U.S. semiconductor factory last year, considering Texas (Austin and Taylor), Arizona, and New York. At that time, Samsung Electronics consistently stated that the factory location had not yet been finalized at the time of the application submission.

This content was produced with the assistance of AI translation services.