Largest Semiconductor Facility in US Breaks Ground

The United States’ share of global chip manufacturing capacity has declined ’sharply' over the past decades, down from 37 percent in 1990 to 10 percent in 2022.

Semiconductor chips on a circuit board of a computer, in this illustration picture taken Feb. 25, 2022. Reuters/Florence Lo/Illustration/ File Photo

Micron Technology, Inc. broke ground at a $100 billion semiconductor facility in New York state on Jan. 16, and the project is expected to deliver “the most advanced memory manufacturing in the world,” the company said in a statement on Jan. 16. The manufacturing complex is being built in Onondaga County.

“With up to four fabs, this will be the largest semiconductor facility in the United States, generating 50,000 jobs in New York,” the company said.

Once completed, the facility will help meet the growing demands of artificial intelligence (AI) systems and devices that are “central to the modern economy,” it stated.

“Production is expected to start in 2030 with the fabs ramping throughout the decade,” Micron said.

The company “plans to invest $250 million in workforce development, education, and other community investments, including transportation and housing.”

In a Jan. 16 post on X, the Commerce Department said the facility would produce advanced chips that are critical for AI, defense systems, telecommunications, automobiles, and next-generation technologies.

The groundbreaking ceremony was attended by Commerce Secretary Howard Lutnick, Labor Secretary Lori Chavez-DeRemer, New York Gov. Kathy Hochul, Sen. Chuck Schumer (D-N.Y.), other officials, and business community members.

“As AI transforms every industry, advanced memory has become essential. By bringing manufacturing to the U.S., Micron is strengthening America’s AI infrastructure and supply chain resilience to power the next wave of AI breakthroughs,” Nvidia CEO Jensen Huang said.

This is the largest private investment in New York state’s history, according to Micron, an Idaho-based company.

The company said the project is a cornerstone of the company’s roughly $200 billion expansion plan in the United States.

The company is planning investments in two leading-edge high-volume fabs in Idaho, modernization and expansion of a manufacturing fab in Virginia, and research and development to boost U.S. innovation, it said.

These investments support the company’s goal of manufacturing 40 percent of its DRAM, a common type of computer memory chip, in the United States, Micron said.

The company said it expects the investments to generate roughly 90,000 U.S. jobs.

Lutnick said the groundbreaking of the facility is more proof that “American greatness is back.”

“Under President Trump, we’re done outsourcing our future and, instead, we’re building it right here at home,” he said.

“Micron’s investment in New York means tens of thousands of great American jobs and strong supply chains finally back in the USA. We are committed to bringing back American leadership in semiconductor manufacturing.”

According to a post by the Semiconductor Industry Association, the United States’ share of global chip manufacturing capacity has declined “sharply” over the past decades, to 10 percent in 2022 from 37 percent in 1990.

However, in past years, more than 100 projects have been announced in 28 states worth more than half a trillion dollars in private investment, and they are projected to triple the United States’ chipmaking capacity by 2032, according to the Semiconductor Industry Association.

To secure semiconductor supply chains, the State Department has introduced the Pax Silica initiative.

Pax Silica is a U.S.-led initiative aimed at building a “secure, resilient, innovation-driven technology ecosystem” that spans critical minerals, energy, advanced manufacturing, semiconductors, AI infrastructure, and logistics, according to the State Department.

It seeks to reduce dependence on coercive supply chains and to protect trusted digital infrastructure. In addition to the United States, the initiative includes Japan, Korea, the Netherlands, Israel, and the UK.

In a statement on Dec. 19, 2025, the Semiconductor Industry Association welcomed the initiative.

“The U.S. State Department’s Pax Silica initiative represents a strong and welcome commitment to deepening economic partnerships to secure supply chains critical to semiconductors, AI, and other key technologies,” Semiconductor Industry Association CEO John Neuffer said.

“We look forward to working with policymakers in the U.S. and partner governments to advance this timely and important effort.”

On Jan. 15, the Department of Commerce announced a massive U.S.–Taiwan deal expected to boost semiconductor manufacturing reshoring.

Under the deal, Taiwanese tech companies will invest at least $250 billion in the United States across the chip, AI, and energy sectors. The Taiwanese government will provide credit guarantees of at least $250 billion to facilitate additional investments from Taiwanese companies to expand the domestic chip supply chain.

The two nations “will establish world-class industrial parks in the United States to strengthen America’s industrial infrastructure and position the United States as the global center for next-generation technology, advanced manufacturing, and innovation,” the department said.