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Micron Boosts Planned US Investment to Over $250 Billion; Shares Jump

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Micron Boosts Planned US Investment to Over $250 Billion; Shares Jump

Micron Technology (MU) increased its planned US investment to more than $250 billion through 2035 and outlined intentions to invest up to $3 billion to bolster domestic semiconductor supply chain, sending the company's shares higher Thursday.

Last year, the semiconductor manufacturer announced plans to invest roughly $200 billion in semiconductor manufacturing and research and development across various US states.

Micron said Thursday the accelerated planned US fab and technology investments come amid "surging demand for memory in the (artificial intelligence) era." The company expects the increased investments to support its long-term target of producing 40% of its dynamic random-access memory domestically.

As part of its planned $3 billion supply chain investment, Micron will provide $500 million in financing support to Taiwanese company GlobalWafers to help advance the development and manufacturing of its 300-millimeter raw silicon wafer manufacturing facility in Sherman, Texas.

Micron shares were up 6.3% in Thursday late-afternoon trade, bringing its year-to-date gains to 253%.

The company poured the first concrete at its mega-fab site in Clay, New York, hitting the milestone more than a quarter ahead of schedule. It is expected to be "the largest semiconductor manufacturing site" in US history, according to a statement.

The company and GlobalWafers will also sign a 10-year supply agreement that will provide Micron with access to "significant" raw silicon wafer capacity, the companies said in a separate statement. They plan to explore collaboration on next-generation wafer technologies.

Last month, Micron provided a fiscal fourth-quarter outlook above Wall Street's estimates and posted stronger-than-expected results for the prior three-month period.

Price: $1020.82, Change: $+72.02, Percent Change: +7.59%

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