Micron’s new Chip project: The US Army Corps of Engineers has initiated an environmental review of Micron's proposal to establish a manufacturing mega campus for dynamic random-access memory (DRAM) chips in central New York state, as announced on Friday.

Micron intends to invest up to $100 billion over the span of the next two decades to develop the 1,400-acre campus in Clay, New York, with an initial investment of $20 billion by 2030. The project's application for funding under the Commerce Department's $39 billion "Chips and Science" semiconductor subsidy program necessitates the environmental review, per the agency.

Construction is slated to start next year, with two out of the four planned 600,000-square-foot fabrication units expected to be operational by 2029. The proposed project also includes the establishment of a childcare and healthcare centre, a connection to the National Grid substation, and a rail spur.

Micron commented that the government's notice marks a major step toward preparation for construction, highlighting the comprehensive environmental reviews mandated by federal law.

A meeting on the environmental review is scheduled for March 19, with the review process expected to span several months. This process will include a 30-day period for public input on the scope, followed by a 45-day public comment period on the draft environmental impact statement before finalisation.

To date, the Commerce Department has announced $1.7 billion in planned subsidies under the program, including allocations to GlobalFoundries, Microchip Technology, and BAE Systems. Commerce Secretary Gina Raimondo underlined that chip companies should anticipate fewer subsidies than requested, with priority given to projects operational by 2030. Despite companies' requests exceeding the department's investment budget, negotiations are underway to optimise subsidy allocation.

(With Reuters inputs)