Micron plans to build a chip factory in upstate New York with an investment of up to $100 billion.

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Micron plans to build a chip factory in upstate New York with an investment of up to $100 billion. On Tuesday, Micron said that it plans to spend up to $100 billion over the next two decades to construct a large semiconductor facility in upstate New York. The decision follows initiatives by the US government to increase the manufacturing of semiconductors within the country.

In Clay, New York, the Idaho company announced its intention to construct the “biggest semiconductor fabrication facility in the history of the United States.” Micron estimates that the new facility will generate roughly 50,000 employment in New York over the next two decades. The location is around 15 miles from Syracuse.

The business has stated that the initial expenditure of $20 billion will take place “before the end of this decade.” In 2023, the company plans to begin site preparation; in 2024, construction will commence; and by the end of the decade, production is projected to “ramp up, progressively growing in line with industry demand patterns.”

On Tuesday, when the news was released, shares of Micron soared by over 5%.

The CHIPS and Science Act, signed into law by Vice President Joe Biden in August, allocates approximately $200 billion over the next five years to stimulate the American semiconductor industry. Some $52 billion was allocated for chip production and research, giving businesses incentives to establish or extend their presence in the United States and purchase new, state-of-the-art machinery and equipment. After a worldwide scarcity of chips, which are used in electronics like cellphones, cars, and computers, lawmakers in the United States attempted to reduce their reliance on Asian manufacturers.

Chief Executive Officer Sanjay Mehrotra thanked “President Biden and his Administration for making the CHIPS and science Act a reality” in a statement released Tuesday.

For decades to come, “this historic leading-edge memory mega fab in Central New York will drive American innovation and competitiveness,” Mehrotra said. “These benefits extend far beyond the semiconductor industry.” A fab is a factory that manufactures semiconductors.

“Critical to supporting hiring and capital investment,” the firm stated of the $5.5 billion in incentives from the state of New York during the life of the project, as well as projected federal grants and tax credits from the CHIPS and Science Act.

New York State Governor Kathy Hochul released a statement praising Micron’s investment, stating it “marks the start of something transformative in scale and possibilities for our state’s economic future.” This investment, she said, is the largest private investment in the state’s history and would “usher the state into another Industrial Revolution.”

It can take a long time to get a new American semiconductor factory operational. Until the CHIPS law was passed, the Taiwan Semiconductor Manufacturing Company had already committed at least $12 billion to establish a semiconductor fabrication plant in Arizona, with production set to begin in 2024.

In January, Intel revealed intentions to invest $20 billion in a semiconductor manufacturing factory in Ohio, but the company later warned that the project could be delayed if the CHIPS legislation was not passed. Only last month did construction on Intel’s new chip factory begins. Biden made the trip to Ohio for the festivities.