US chipmaker Micron Technology is set to receive more than $13bn in government funding and loans to help build memory chip factories in New York and Idaho as the Biden administration seeks to shift supply chains away from Asia.The preliminary agreement, which includes $6.1bn in direct funding and up to $7.5bn in loans, will come under the 2022 Chips Act. Funding packages for Intel, TSMC and Samsung have been announced in recent weeks.

President Joe Biden will be in Syracuse, New York, on Thursday to announce the US chip sector’s latest support package, this time focused on the production of leading-edge memory chips, known as Dram.

The funding will go towards two new manufacturing plants in Clay, New York, as well as a plant in Boise, Idaho, where Micron has its headquarters. Under the agreement, Micron plans to invest up to $125bn in both states in the next two decades.