Micron's Reassurance

Update 03.04.08 13:01:  This morning, Micron introduced a bill in the Legislature to eliminate personal property tax on businesses.  PaleoMedia has more.

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Is Micron Technology feeling a little pressure to deliver on the tax breaks and incentives given to the company by the Idaho Legislature?  That may have something to do with yesterday's announcement that the company plans to build a new manufacturing facility in Boise.  Via KTVB.com:

The company says it decided to build the new plan in Boise due to the proximity to existing research and development facilities, as well as incentives provided by Idaho government officials for Micron to expand in the Gem State. Micron worked with lawmakers three years ago to secure tax breaks as an incentive to build in Idaho.

Interesting, though, is the admission by the company that construction plans are not definite and that the net effect on Idaho jobs may, in fact, be negligible.

There was no timeline announced today. Durcan says the construction will really depend on supply and demand within the industry, which has been quite volatile of late.  He said it will likely not break ground this year.  This is not expected to increase Micron's employment numbers all that much, but Durcan says it could help secure the jobs that exist there today.  [emphasis mine]

So why would Micron announce plans to build a plant at some indefinite point in the future that may or may not have any effect on employment in the state?  After a year of bad news that included layoffs for over 1,100 Boise employees, the pressure to deliver some good news to Idaho may be a factor. 

It is also interesting that Micron executives seem eager to reassure "friends" that the company's cozy relationship with Gov. Otter and the Legislature remains intact, as evidenced by an email letter sent on February 28 by a Micron executive.  [Letter reprinted in it's entirety as received after the jump.] 

Reassurance—to Idaho and to shareholders—seems to be the watchword here.

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Friends,
I am dropping you this note today to correct some misinformation showing up in "blogs" and "opinion pages" of reporters who follow Idaho's public policy process. Unfortunately, if you don't stamp out a rumor right away, it tends to grow.

In the wake of some of the economic stimulus proposals being discussed at the Capitol Annex, there have been claims that Micron is being ignored or snubbed by the Governor and State Legislature. There have also been claims that somehow the Legislature and Governor have balked when Micron has asked for help.

For the record there is no truth in these claims.  To expand on this, during the last year, the Governor has personally met - on multiple occasions - with Micron's leadership. As we have discussed the current economics of our industry, his first reaction has always been, "How can Idaho help?"

I should also clarify that these meetings have occurred due to the Governor reaching out to Micron. He has worked hard to develop an understanding of Micron's business and our volatile industry. He has learned about our manufacturing processes, our investment decisions, our research and development efforts, our strategic partnerships with other companies, our employee programs --- you name it, he has asked the questions.

In addition, the Idaho Department of Commerce, the Idaho Department of Labor and multiple members of the Governor's staff contact me on a weekly basis to get an update on our business and offer any assistance that we may need.

And the buck doesn't stop at the executive branch. The members of the Idaho State Legislature read the same newspapers and Internet reports that you do. They are fully aware that the semiconductor industry is in a downturn and that Micron has taken necessary steps to cope with these difficult times and remain competitive.

Like the Governor, the overwhelming response from the Legislature is, "How can Idaho help?" It isn't just one or two Boise-area legislators. This support has come from legislators throughout the state. They offer encouragement and optimism. They seem to feel a pride of ownership with respect to Micron as so many are aware of our humble beginnings as a small Idaho business.

Personally, I applaud the efforts of the state to provide economic stimulus to employers. They are aware that other states and countries are aggressively trying to lure current and future employers away from Idaho. Instead of giving up, our state government continues to make jobs and a strong economy a priority as they develop public policy.

I started out writing a brief note to dispel a rumor and let a few of my friends know that Micron and Idaho's government officials continue to have a strong partnership. I have probably exceeded the "brief" part, but I hope the message comes through.

Thanks.
Mike

Mike Reynoldson
Idaho Government Affairs Manager
Micron Technology, Inc.
(208) 599-0510

Comments

[Sisyphus]

It smells very fishy to me. Smoke and mirrors.

[Sisyphus]

Or to adopt another Army of Darkness quote: "Its a trap, get an axe". The timing of the bill is no coincidence.

[Alan]

Jeez. It sure looks like they're trying to sucker our legislators into a tax break. I'll bet it works. I'll also bet that once they get the tax breaks, Idaho will never see the promised benefits.

[Bubblehead]

Those who work there have been wondering about where the new Fab was going to be built, and they announced it to let them know -- no sense keeping team members wondering if they might be transferring sometime soon. Once the non-management team members knew, word was going to get out, so they might as well announce it to the press. The news that Nanya is in negotiation to basically outsource their R&D to Micron is also big news for those who work in the R&D section of Micron, who now don't have to worry as much about keeping their jobs or having to move. It's good news all around. I know there are lots of people who seem to want to see Micron fail, but from where I'm standing it's not going to happen.