- Micron plans to invest over $250 billion in US fabrication plants and technology by 2035
- The company announced a $3 billion investment to support the US semiconductor supply chain
- Micron signed a 10-year wafer supply deal with GlobalWafers including $500 million financing
Micron Technology Inc.'s stock saw a surge of over 7% on the Wall Street following key business announcements, including plans to raise expected investment in American fabrication plants and technology.
The company has raised its planned investment to more than $250 billion through 2035, driven by surging demand for memory in the AI era.
"As America celebrates its 250th anniversary, data and memory are foundational to the modern economy — and Micron is increasing our US investments to more than $250 billion through 2035 to meet that moment," said Sanjay Mehrotra, Micron Chairman, President, and CEO.
On top of this, the chipmaker has announced that it will invest $3 billion to develop the domestic semiconductor supply chain ecosystem in support of its US manufacturing footprint.
Micron has entered into a 10-year raw supply wafer supplydeal with GlobalWafers- America's 300mm wafer facility in Sherman, Texas- which includes strategic financing of up to $500 million.
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As of 9:34 a.m. EST, the shares traded 6.4% higher at $1,010.7. The share price has zoomed over 700% in the last 12 months, and 254% year-to-date.
The Sanjay Mehrotra-led semiconductor giant expects the increased investments to accelerate its long-term goal of ramping up DRAM in the United States to 40%.
The announcements come as Micron celebrates the first concrete pour milestone at its Clay, New York site, which occurs more than one quarter ahead of the original plan and marks the transition from site preparation to vertical construction.
"Micron is proud to bring the world's most advanced memory manufacturing to Central New York, strengthen the domestic semiconductor supply chain and help secure America's technology leadership for generations to come," Mehrotra stated while commenting on the concrete pour.
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