SAN FRANCISCO — Micron Technology, the only U.S.-based maker of advanced memory chips, said its decision to reshore production rested on sweeping support from state government as well as Washington. The governor personally stepped in to cut permitting timelines in half and build out infrastructure in advance, the company said, clearing the way for Micron to return home with the aim of powering an American artificial intelligence revival.
Scott Gatzemeier, Micron's corporate vice president, laid out the rationale behind the company's New York project on the 13th at SEMICON West, North America's largest semiconductor exhibition, held in San Francisco. He oversees the company's new fab projects in New York and Idaho.
In June last year, about five months into President Donald Trump's term, Micron announced a $200 billion plan to build cutting-edge fabs. The plan calls for two fabs in Idaho and four in New York, along with the modernization of its Virginia facility. The New York project, which carries a $100 billion price tag — the largest investment in U.S. history — broke ground in January. Micron raised its total U.S. investment commitment to $250 billion in July.
Asked why the company chose to produce such vast volumes of chips in the United States and in New York, Gatzemeier said there were three reasons. "First, our customers realized through COVID-19 how important a resilient supply chain is, and they wanted memory supply from the United States," he said. "Second, the U.S. government recognized the importance of national security and the economy and created the CHIPS Act and the investment tax credit, which leveled the playing field," he added. "We have the Great Lakes next to the site and a gigawatt-class nuclear plant 40 miles away."
Consistent with his account, Micron signed direct funding agreements with the U.S. Commerce Department in December 2024 under the CHIPS Act, covering up to $6.1 billion for one Idaho fab and two fabs in Clay, New York. An additional $275 million for the expansion of its Virginia plant brings the total subsidy to as much as roughly $6.4 billion. The company also qualified for the investment tax credit, which covers 35% of eligible investment. The United States raised the credit rate from 25% to 35% last year, and because it applies to fabs that begin construction before the end of 2026, Micron is covered.
Above all, the full-throated backing and decisiveness of New York Gov. Kathy Hochul proved decisive. "The governor met with us for the first time within a week of taking office, and her support has been really tremendous," Gatzemeier said. "What I want to emphasize is that she created an office called GOSEMI." GOSEMI stands for the Governor's Office of Semiconductor Expansion, Management and Integration, which reports directly to the governor. "We needed 600 steps and 40 permits, from local to federal," he said. "But with GOSEMI's help, the permitting timeline was cut by 50% compared with other large projects in New York."
Notably, the state did not add new deregulation but instead improved execution by managing existing rules under one roof. According to Empire State Development, GOSEMI coordinated the 600 regulatory steps required for 40 federal, state and local permits into a single workflow. That is how the timeline was compressed by half. The state says it did not eliminate any permits or environmental reviews, but rather integrated the reviews and schedules of individual agencies.
At the same time, the state government moved in parallel on power and water. The New York Power Authority allocated low-cost electricity, and the state Public Service Commission approved a roughly 3.2-kilometer, 345-kilovolt underground transmission line from an existing substation to the Micron site, along with a substation expansion. The state also pushed ahead with water supply facilities and new water mains.
The state separately adopted a performance-based approach through Green CHIPS, a refundable tax credit worth up to $5.5 billion to be delivered in two phases over about 20 years, with payments conditioned on meeting targets including 9,000 direct jobs and $100 billion in investment. The state Department of Environmental Conservation issued nine permits covering wetlands, water quality and endangered species at once, and also approved the installation of water mains and natural gas lines.
Lawmakers debating the various support measures were also driven by a strong sense of urgency about prevailing in the hegemonic contest with China. Rep. Darrell Issa, who attended the forum, said semiconductors are too important to lose the race. "Everyone knows we cannot lose this race because semiconductors are so important," he said. "We cannot allow any one country to monopolize part of the supply chain."