The request for the money, from the Idaho Office of Energy Resources, still needs U.S. Department of Energy approval. Though far less than the $20 million to $100 million Micron Technology requested earlier this year, it0 would help Micron's efforts to expand into the new energy industry and create jobs in Idaho.

"Micron has the ability to leverage its own resources to create more jobs, and they look ready to get rolling in a year or so," said Paul Kjellander, director of the Office of Energy Resources.

Light-emitting diodes, commonly called LEDs, use one-seventh as much energy as conventional lighting and can last many times longer. LED lights can be used in lamps and fixtures, municipal streetlights and outdoor lighting such as Boise startup Inovus Solar's solar-powered street lamps, traffic signals and auto lights.

Micron is seeking to get into the "high brightness" LED market, which an industry expert says did $5 billion in sales in 2008 and is expected to grow to $12.5 billion by 2013. The move could help the shrinking company diversify. Micron is laying off 2,000 people by August as it ends computer-chip manufacturing on its Boise campus.

Micron expects to create or keep 35 jobs with annual wages of $60,000 to $130,000 and an additional 50 temporary jobs for retooling, remodeling and setting up the LED manufacturing modules. Thirty-nine indirect Idaho jobs would be created, the proposal estimates.

Micron plans to begin work on prototype LED lighting modules in the next three months and produce the prototypes by the first half of 2010. Full production is expected by 2011.

"There's lots of growth, and there certainly is room for new suppliers," said Robert Steele, director of Optoelectronics, a marketing research company in Mountain View, Calif. "It really depends on what strengths they bring to the game."

Mark Durcan, Micron's chief operating officer, said in March that the company's mass-manufacturing experience in semiconductors will allow it to dramatically lower the costs of LEDs by developing the same kind of output efficiencies that have made Micron a leader in its primary field: making dynamic random-access memory.

Micron already has hired engineers and marketing employees to work on LEDs and said it would leverage $150 million in existing investments in research and development, buildings, equipment, work force and intellectual property.

The state proposal is aimed only at Micron's LED business. Micron continues to work on developing a separate solar panel business, Kjellander said.

"It's just that the LED business is ripe and ready," he said.

Micron also is seeking additional stimulus money through the Department of Energy.

The Micron money would be part of the state's proposal for spending $37 million in energy funds under the American Recovery and Reinvestment Act of 2009. Other money would go to energy-efficiency programs for schools and a pilot plant to install solar panel on five to 10 schools around the state. Energy-efficiency programs for cities and counties and funds to establish renewable-energy enterprise zones also are included.

Micron spokesman Dan Francisco did not return a telephone call seeking comment. But Kjellander said the company is excited that the state has backed its energy initiative.

"They appreciate we see the value in that, and that it sends a strong message that the state is engaged," Kjellander said.

Rocky Barker: 377-6484