Micron invests billions more in US chipmaking

Memory chip maker Micron Technology has announced significant new investments aimed at bolstering the U.S. semiconductor supply chain. The company is increasing its planned investment in the United States to $250 billion through 2035, marking an approximately $50 billion increase from previous projections.

As part of this strategic expansion, Micron will commit up to $3 billion towards critical materials and manufacturing capacity. A portion of this, $500 million, will be invested in Taiwan-based GlobalWafers to expand its wafer development and manufacturing operations in Texas. This investment secures a 10-year supply agreement for raw silicon wafer capacity.

"Securing a reliable supply of critical input materials is essential to supporting Micron’s long-term growth and technology roadmap," stated Ben Tessone, Micron's chief procurement officer, in a press release. The announcement of these substantial investments was met with a positive market reaction, with Micron's stock price rising approximately 7% following the news.

The increased investment comes amid a surging demand for memory chips, driven largely by the buildout of artificial intelligence systems. Other companies in the semiconductor sector, including Applied Materials, KLA Corp, ARM Holdings, and Lam Research, also experienced significant stock gains on the same day.