The Biden administration has awarded Micron up to $6.1 billion in grants to support the construction of semiconductor plants in New York and Idaho, aiming to bolster U.S. chip manufacturing.

The federal investment aligns with the goals of the CHIPS Act to reinvigorate the U.S. as a major player in semiconductor production, with plans to increase domestic manufacturing to counter the current 10 percent global share.

Micron's expansion is anticipated to generate approximately 50,000 jobs, which includes 9,000 direct jobs at the new and existing plants, significantly contributing to the U.S. job market.

The grants are part of a strategic move to incentivize semiconductor companies to develop and enlarge their facilities within the U.S., addressing the vital demand for chips across various industries.

Following the announcement, Micron Technology's stock rose by 1.9 percent, and other related chip stocks experienced gains, indicating a positive market reaction and potential growth in the broader tech sector.

Investors are advised to stay informed and flexible with their strategies in light of the Federal Reserve's mixed indications on interest rates and to look out for upcoming economic data for insights on market trends and potential economic downturn risks.