‘Right here at home’: Mayor says Micron investment helps Boise’s economic, climate future
Micron’s $15 billion manufacturing plant at its Boise headquarters would bring semiconductor production back to Boise. Mayor Lauren McLean is excited about it.
“It is the largest single economic development investment in our state’s history,” McLean told the Idaho Statesman by phone. “And it’s right here at home.”
The $15 billion will be invested in Boise between now and 2030, and the company has said the plant will create more than 17,000 American jobs and 2,000 for Micron. It is unclear how many of those jobs will be in Boise.
Memory chips are essential components of modern devices like smartphones and cars, and which allow them to store and retrieve data.
“What this means is that there are jobs for our kids and grandkids,” McLean said. “This keeps innovation here and creates opportunities for generations to come.”
McLean said the city has worked with the Idaho Department of Commerce, Idaho Power and the state’s universities for about a year. She did not say when she learned about the company’s decision, but noted that CEO Sanjay Mehrotra told her himself about the company’s plans.
Sean Keithly, the city’s economic development director, told the Statesman the city learned about Micron’s decision “pretty much in tandem” with the public announcement.
McLean attended President Joe Biden’s signing of the CHIPS Act in Washington last month, a bill with $52 billion in subsidies and tax credits for chip manufacturers to add or expand their plants in the U.S.
On the day of the signing, Micron announced a $40 billion investment in American memory manufacturing in the U.S. The company has explored building new plants in other parts of the U.S., like Texas.
“Once that was a part of the equation, Micron was able to make some other decisions, including a decision to locate their (research and development) in their first fab here in Boise,” McLean said.
A fab is a semiconductor manufacturing plant.
What assurances has Boise made?
Over months of meetings with Micron, staff in the mayor’s office and the Public Works Department discussed what the world’s fourth-largest semiconductor manufacturer would need to build its new plant in town.
Micron’s manufacturing plant will be a complicated facility, and will have to be reviewed — as all development projects are — by city staff.
“Key to them was just to have that assurance that we were up to the task of reviewing a project that was of this size and scale,” Keithly said. “It’s the largest single investment in a single project in Idaho, and making sure that they know that we’re ready to take that on as a city and our role as the permitter and reviewer was one of their top priorities.”
State benefits
In this year’s legislative session, state lawmakers passed a companion bill to the CHIPS Act that exempted local companies from sales tax on construction and building materials used for semiconductor plants.
The Legislature has also capped the taxable value of Micron’s property at $400 million.
How will Micron’s plant affect the city?
McLean said Micron’s announcement will benefit the entire region.
“It means that innovation continues to stay here at home, and the impacts of the innovation on our economy and future companies is real,” she said.
Some have raised concerns that in Boise’s steep housing market, an influx of new jobs could exacerbate the shortage of affordable housing.
“We remain focused on increasing access to affordable housing in our community, and so we have a land trust,” said McLean. Boise has partnered with developers to build affordable housing on city-owned land.
“That’s why we’ve got public-private partnerships, to expand access to affordable housing and to protect existing affordable housing. It’s really important that we have well-paying jobs in this community that provide for Boiseans the salaries they need to live here. And so part of our pursuit is is growing jobs that pay family wages, and this is an important step in that direction.”
Keithly also noted that high quality of life, affordable housing and transportation are city priorities that Micron shares.
“Those are other things that they wanted to make sure that we had a shared commitment toward,” he said.
Effects on city’s climate goals
Both Boise and Micron have announced emissions goals to head off the effects of climate change.
Boise has committed to being carbon neutral by 2050, as has Micron. The company has also committed to relying on 100% clean energy in the U.S. by 2025 and to reduce greenhouse gas emissions globally by 42% by 2030.
Idaho Power services Micron, and the power supplier generates 32.5% of its electricity from hydroelectric power, 11.7% from wind and 4.1% from solar.
Referring to Micron, McLean said the city has “a great partner in protecting open space and clean water and achieving our climate goals.”
McLean also said Micron will partner with Boise on reusing water.
“Anytime ... you have a large employer that shares your values and understands the impact of a climate-constrained world and what you need to do to thrive, we’re better off,” she said.
The city has a water treatment pilot program with Micron, Keithly said.
Manufacturing uses a lot of water, and Keithly said the company is developing “new innovative approaches to treat wastewater in the most advanced way possible.”
“We really hope to extend that continued spirit of partnership and collaboration to advance that best-in-class wastewater treatment technology,” he said.
Manufacturing plants also use a lot of electricity, and a spokesperson for Idaho Power, Jordan Rodriguez, told the Statesman in an email that the utility will “propose a detailed framework for providing energy service” and submit it to review by the Idaho Public Utilities Commission.
“Idaho Power has a robust planning process through which we examine anticipated customer growth and the increasing energy demand over the next 20 years,” Rodriguez said. “We will continue working with Micron to understand their future energy needs in a way that serves all customers reliably, at a price that’s fair, and in keeping with our goal of producing 100% clean energy by 2045.”
This story was originally published September 1, 2022 at 2:56 PM.
