Micron Plant Provides Backdrop for Bush

President Says Semiconductor Firm Is a Model That Supports His Economic Policies

Micron Technology's plant in Manassas makes some of the most sophisticated memory chips in the world, semiconductors made from wafers of silicon 300 millimeters thin that run MP3 players, smart phones and satellite navigation systems.

But the finer details of the 650,000-square-foot plant's operations may have escaped the company's most esteemed visitor yesterday, President Bush.

They "tried to explain all the big machines that were there to a history major. I played like I understood," Bush said in a speech to 150 Micron employees.

Bush nevertheless praised the company for its growth, exports and creation of high-skill jobs -- a model, he said, for the nation's economic growth.

"One thing about Micron is that it is clear that the role of government is to encourage investment and enhance educational opportunities," Bush said. "I mean, when you walk through the halls of this innovative company, it's pretty clear to me that you need to know what you're doing in order to make this company survive and thrive like it is."

It was the president's first visit to the Manassas plant, which Micron bought in 2002. The company was lured to Northern Virginia by about $25 million in local and state tax incentives and it has grown impressively since, albeit with a few setbacks along the way.

Micron initially laid off 560 workers but has since undergone a $3.5 billion expansion that has brought in 800 new employees. About 1,700 people work there now.

More recently, the parent company, with manufacturing plants around the world, was granted immunity for cooperating with a federal investigation into whether some of the biggest companies in the semiconductor industry have fixed prices. Micron agreed to pay $91 million to settle a class-action lawsuit by chip purchasers, and still faces legal action from many states, including Maryland and Virginia. The company overall is now dealing with falling prices worldwide for some chips.

Steven R. Appleton, Micron's chief executive, said the White House approached Boise, Idaho-based Micron about the tour last week, impressed by the firm's decision to expand operations domestically.

"We've been investing here in Virginia for quite some time and have put our most advanced technology here," Appleton said.

About 60 percent of the company's products are exported overseas, he said: "This is a good example of how companies can invest in the U.S -- and we're manufacturers."

Bush came to Micron primarily to promote the $2.9 trillion budget he submitted to Congress on Monday and to preach the importance of fiscal responsibility.

Bush promised to balance the federal budget by 2012 by "keeping taxes low and being wise about how we spend your money." He said his hallmark economic policies -- the promotion of trade and tax cuts -- have helped companies like Micron grow.

"By cutting capital gains taxes and taxes on dividends, it encourages capital flow; it makes it easier for Micron to attract capital to buy new equipment to expand your business and to remain competitive," Bush said.

With just a few days' notice of the president's visit, crews rushed to spruce up the plant. They painted parts of the building and cleared rocks in a parking lot for the four White House helicopters that carried Bush, Secret Service agents and journalists between the District and Manassas. Inside, workers hung blue velvet curtains in the assembly room, played patriotic music through speakers, and set up a large promotional backdrop displaying the various products that use Micron's chips.

"We feel incredible pride, beyond what you can imagine," said Stephen Silberstein, facilities manager at the Manassas plant.