The company said the investment would also create 1,100 jobs and would be in-line with its long-term business model of capital spending in the low thirties of a percent of revenue. The company did not indicate whether the investment would be back- or front-end loaded although, in an undersupplied memory market, it is enjoying sharply increasing revenues at present.
"Micron's Manassas site manufactures our long-lifecycle products that are built using our mature process technologies, and primarily sold into the automotive, networking and industrial markets," said Micron CEO Sanjay Mehrotra, in a statement.
The initial clean room expansion is expected to be completed in the fall of 2019 with production ramp in the first half of 2020. This expansion will add less than 5% to Micron's global clean room space footprint and will primarily support enablement of DRAM and NAND technology transitions as well as modest capacity increase at the site, in-line with growing customer demand for Micron's long-lifecycle products.
As part of this expansion, Micron will also establish a global R&D center in Manassas for the development of memory and storage solutions focused mainly on the automotive, industrial and networking markets. The center will include laboratories, test equipment and a staff of approximately 100 engineers.
Micron will be eligible to receive a grant of $70 million for site preparation and facility costs, subject to approval by the Virginia General Assembly. Additionally, the City of Manassas and utility partners are providing a broader, comprehensive support package to enable the expansion, including infrastructure upgrades and additional incentives.
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