How an Idaho potato farmer backed Micron when it lost its only customer, helping a basement startup enter America’s semiconductor big leagues

In 1978, Micron Technology operated out of a rented basement beneath a dentist’s office in Boise, Idaho. The startup had early designs for computer memory chips, but virtually no operating cash.

When its only paying customer unexpectedly walked away, Micron lost its entire revenue stream overnight. The founders didn't have enough money to pay rent, let alone purchase semiconductor manufacturing gear.

How an Idaho potato farmer helped save Micron, the chipmaker behind the AI boom

J.R. Simplot made his fortune in potatoes. In the late 1970s, the Idaho businessman put $1 million into a young technology company in Boise called Micron Technology. The investment came at a difficult time for the chipmaker. It had lost its only customer and needed money to continue building its business.


Micron was founded in 1978, when the semiconductor industry was already demanding substantial investment in research and manufacturing. The company had technology to develop, but turning that work into a viable business required capital. Simplot's money helped Micron finance its first manufacturing plant and continue operating when its future was uncertain.

Micron began in Boise in modest surroundings, operating out of a dentist's office basement. Its founders included Ward Parkinson, Joe Parkinson, Dennis Wilson and Doug Pitman. They were building a semiconductor business in an industry where technical ability alone wasn't enough to guarantee commercial success.

Making memory chips requires specialised equipment, production facilities and continued investment in manufacturing. A company must also find customers willing to buy its products at prices that cover its costs. For a startup, losing a customer can quickly become a financial problem, particularly when that customer accounts for all its sales.

That was the position Micron faced after losing its only customer. Without new business and enough money to keep developing its operations, the company had limited room to manoeuvre.

Simplot's $1 million investment provided a source of funding when Micron needed it. The money helped finance the company's first manufacturing plant, giving it a base from which to pursue chip production and build a larger business.

Why a potato businessman backed a semiconductor company

Simplot's business background was far removed from chip design. He had built his wealth through agriculture and food processing, starting with potatoes and expanding into a much larger operation. His investment in Micron put money into a company working in a different industry, with different products and commercial risks.

His involvement also went beyond the initial $1 million. Simplot continued to support Micron through difficult periods in the semiconductor market. He also backed efforts to secure trade protections for US chipmakers facing competition from lower-priced Japanese memory chips.

Micron survived those challenges and grew into a major US memory-chip manufacturer. Its products are used in computers, smartphones and servers. Memory has also become increasingly important to data centres that support artificial intelligence, where systems need to store and access large amounts of information.

The company operates in a very different market from the one it entered in 1978. Its growth reflects decades of engineering, manufacturing investment, customer relationships and competition. Simplot's money did not build that business on its own.