Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)

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Layered CHIPS Instruments and Firm Response: Evidence from Micron’s High Bandwidth Memory Investment Program

Authors
Chi Zhang1, *
1Santa Monica College, 1900 Pico Blvd, Santa Monica, CA, 90405, USA
*Corresponding author. Email: chiz16971@gmail.com
Corresponding Author
Chi Zhang
Available Online 29 April 2026.
DOI
10.2991/978-94-6239-642-5_56How to use a DOI?
Keywords
CHIPS Act; Advanced Manufacturing Investment Credit; High-Bandwidth Memory; Industrial Policy; Subsidy Conditionality
Abstract

This article examines how the United States’ layered industrial policies—the Chip Manufacturing and Manufacturing Information System (CHIPS) incentive, Sect. 48D Advanced Manufacturing Investment Credit, and New York State’s performance-based program—influenced Micron’s investment in high-bandwidth memory (HBM). The study assesses attachment, conditionality, and governance mechanisms by tracking the flow of key disclosures (2022–2025). Evidence suggests that these policy instruments reinforce each other: CHIPS anchors location and timing; Sect. 48D enhances after-tax returns; and New York State adds milestone projects and community benefit obligations backed by state capacity. Governance mechanisms—milestone project expenditures, recaptures, and foreign entity guardrails—redistribute bargaining power, curb subsidy leakage, and shift execution risk toward on-time delivery. Policy effects are expected to propagate through system bottlenecks, expand domestic HBM supply, and pave the way for advanced packaging readiness, although capacity remains a limiting factor. Remaining risks relate to execution capacity, workforce, and policy durability.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
Series
Advances in Economics, Business and Management Research
Publication Date
29 April 2026
ISBN
978-94-6239-642-5
ISSN
2352-5428
DOI
10.2991/978-94-6239-642-5_56How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Chi Zhang
PY  - 2026
DA  - 2026/04/29
TI  - Layered CHIPS Instruments and Firm Response: Evidence from Micron’s High Bandwidth Memory Investment Program
BT  - Proceedings of the 2026 11th International Conference on Financial Innovation and Economic Development (ICFIED 2026)
PB  - Atlantis Press
SP  - 579
EP  - 587
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-642-5_56
DO  - 10.2991/978-94-6239-642-5_56
ID  - Zhang2026
ER  -