Micron Technology commits $250 billion to US expansion as AI memory demand reshapes chip industry

Micron breaks ground on $9bn Hiroshima expansion to chase AI memory demand

The Hiroshima site that produced Micron's first HBM wafer is getting a ¥1.5 trillion sequel, with Tokyo picking up roughly half the bill. Micron Technology broke ground on Saturday on a ¥1.5 trillion, roughly $9.3bn, expansion of its factory in Hiroshima, western Japan, the company's latest bet on the AI memory boom that has already pushed its market value past $1 trillion. The Boise, Idaho based chipmaker will use the site to produce high-bandwidth memory, the stacked DRAM that sits next to GPUs inside AI accelerators from Nvidia and other customers. Commercial shipments from the expanded facility are expected to begin around the summer of 2028. That is a long runway in an industry where HBM has become the binding constraint on AI infrastructure, and Micron is only one of three companies in the world that can make it at scale. Japan's Ministry of Economy, Trade and Industry has committed up to ¥500bn toward the project's capital costs, according to Bloomberg's reporting on the groundbreaking. Add in research and development support already pledged, and the government's backing for Micron's Japanese operations now totals roughly ¥775bn, a subsidy package that covers close to half of the new investment. Speaking at the ceremony, chief executive Sanjay Mehrotra noted the symbolism of the location. Micron's first HBM production wafer, he said, was made at this same Hiroshima site, the piece of memory technology now sitting at the centre of the AI buildout. The expansion is not an isolated move. It sits inside a broader Micron programme that includes leading-edge plants in Boise and a $100bn manufacturing complex near Syracuse, New York, all aimed at lifting DRAM capacity as demand outstrips what the industry can currently supply. Micron's own most recent quarterly results showed it can fulfil only between half and two-thirds of customer orders for HBM, with its entire 2026 output already sold out under multi-year contracts. Japan has treated the deal as part of a larger industrial strategy. Prime Minister Sanae Takaichi last month unveiled a long-term roadmap targeting ¥101.6 trillion in combined public and private investment in semiconductors and AI through 2041. Tokyo has now committed tens of billions of dollars to chipmakers since 2021 in an effort to rebuild a domestic industry that once led the world in memory production before ceding ground to South Korea. That earlier dominance, and its loss, gives the Hiroshima project a certain historical weight. Japan spent the 1980s and 1990s as the centre of gravity for global memory manufacturing before Samsung and SK Hynix overtook it, and the subsidy regime now underwriting Micron's expansion is Tokyo's attempt to claw back some of that relevance rather than simply host a foreign company's factory. Micron has leaned into that relationship before. The company took a similar subsidy path in 2023, when it announced plans to bring extreme ultraviolet lithography to Japan with up to $3.6bn in government backing, and it has more recently tied its fortunes to the wider AI ecosystem through a multi-year supply agreement with Anthropic covering HBM, DRAM and storage for the AI company's data centres. Rivals are not standing still. Samsung and SK Hynix have both been producing HBM at scale for longer than Micron and are running their own expansion programmes, which means the competitive map could look considerably different by the time Hiroshima's new lines are shipping at volume in 2028. For now, the more immediate effect of the memory squeeze is being felt well outside the AI data centre. Consumer electronics makers have already begun absorbing the cost of the DRAM shortage, as manufacturers redirect wafer capacity toward the higher margins that HBM commands. Micron's Hiroshima expansion adds meaningfully to future supply, but shipments are still two years away, and the current shortage shows no sign of easing before then.

Micron raises US investment to $250B, aims 40% domestic DRAM output

American semiconductor giant Micron Technology will invest more than $250 billion in the United States through 2035, increasing its spending plans as demand for AI memory chips continues to rise. The company said the expanded investment supports its goal of producing 40 percent of its DRAM memory in the U.S. while expanding domestic manufacturing capacity and creating thousands of jobs. The announcement coincided with the first concrete pour at Micron's semiconductor campus in Clay, New York, marking the start of vertical construction. The company said the milestone was reached more than a quarter ahead of its original schedule. Micron also announced a separate plan to invest up to $3 billion to strengthen the U.S. semiconductor supply chain that will support its manufacturing operations across the country. The New York project is expected to become the largest private investment in the state's history. Once completed, the campus could include up to four fabrication plants and generate around 50,000 jobs, including 9,000 direct positions at Micron. The company said the expanded investment reflects growing confidence in long-term demand for advanced memory used in AI systems and data centers. Chairman, President and CEO Sanjay Mehrotra said, "As America celebrates its 250th anniversary, data and memory are foundational to the modern economy - and Micron is increasing our U.S. investments to more than $250 billion through 2035 to meet that moment." Micron has already awarded about $675 million in contracts to New York-based contractors, suppliers and subcontractors, representing more than half of the total value awarded so far. According to the company, more than 80% of workers currently on the site are New York residents. Construction is also advancing at Micron's Idaho facilities. The company expects first wafer output from its first Idaho fab in mid-2027, followed by production from a second fab in late 2028. In Virginia, Micron has already started initial production of its 1-alpha DDR4 memory technology for automotive, industrial, medical, aerospace, and defense customers. The projects in New York, Idaho, and Virginia are expected to create more than 90,000 jobs in total while expanding domestic semiconductor production. Commerce Secretary Howard Lutnick said, "Today, Micron pours the foundation on its massive semiconductor campus in upstate New York and increases its American investment commitment to $250 billion, creating nearly 100,000 jobs and providing leading-edge memory supply here in the United States." Micron said the New York facility is central to its strategy of producing a larger share of its DRAM chips domestically. The company added that it will continue aligning its manufacturing expansion with market demand while investing in research, development, and supply chain capabilities. Alongside the manufacturing expansion, Micron recently announced a $250 million commitment to Trump's "Trump Accounts" initiative, which includes a one-time $250 seed deposit for eligible children in communities where the company operates. It has also committed more than $50 million to workforce development, STEM education, housing, transportation, and childcare projects in Central New York.

Micron raises U.S. investment to $250 billion for AI memory chips

Micron $MU Technology announced Thursday it is raising its planned U.S. investment to more than $250 billion through 2035, a roughly $50 billion increase from its prior commitment, driven by demand for memory chips in the artificial intelligence era. Reaching 40% of DRAM output on U.S. soil is the target the expanded funding is designed to hit, and Micron projected that the broader domestic manufacturing buildout would support more than 90,000 jobs, the company said. Micron Chairman, President and CEO Sanjay Mehrotra made the announcement at an event in Clay, New York, where the company also marked the first concrete pour at its new fab -- a milestone reached more than one quarter ahead of the original schedule. "As America celebrates its 250th anniversary, data and memory are foundational to the modern economy -- and Micron is increasing our U.S. investments to more than $250 billion through 2035 to meet that moment," Mehrotra said in a statement. Commerce Secretary Howard Lutnick and New York Governor Kathy Hochul were among the officials on hand for the event. The New York facility, located near Syracuse, is expected to be the largest semiconductor manufacturing site in U.S. history, the company said. With up to four fabs planned, the project is projected to generate 50,000 jobs in New York, including 9,000 direct Micron positions. Less than six months after breaking ground in January 2026, Micron said it has directed approximately $675 million to New York-based contractors, suppliers, and subcontractors, with more than 80% of on-site workers drawn from New York residents. In a separate announcement, Micron outlined a plan to direct up to $3 billion toward strengthening the U.S. semiconductor supply chain, with $500 million of that earmarked as strategic financing for GlobalWafers, a silicon wafer maker based in Taiwan, to scale up production capacity at its Texas operations. Under the deal, GlobalWafers would supply Micron with raw silicon wafers over a decade-long contract tied to the company's long-term U.S. manufacturing plans. Beyond New York, Micron said construction is underway on two new fabs in Boise, Idaho, with first wafer output expected in mid-2027 for the first fab and late 2028 for the second. The company launched initial production at a Virginia facility earlier this year. Shares climbed to an intraday high of $1,035.50 on Thursday, a gain of as much as 9.1% on the session. Year to date, the stock has more than tripled in value. The announcement builds on a period of strong momentum for Micron. The company reported fiscal third-quarter results that cleared analyst targets on nearly every key measure, with the company projecting that a memory-chip shortage will persist past 2027.

Micron Invests $9.2 Billion to Expand Melory Production at Hiroshima Facility

Micron has announced another major investment in advanced memory manufacturing, revealing plans to significantly expand its Hiroshima production campus in Japan. The project, valued at approximately $9.2 billion, will focus primarily on High Bandwidth Memory (HBM) production and is expected to begin shipping products during the second half of 2028. The expansion comes as demand for AI hardware continues to drive unprecedented growth across the memory industry. HBM has become a critical component for AI accelerators and high-performance GPUs due to its exceptionally high bandwidth and energy efficiency. As AI infrastructure deployment accelerates worldwide, memory manufacturers are investing heavily to secure additional production capacity. Japan's Ministry of Economy, Trade and Industry (METI) is expected to support the Hiroshima expansion with an estimated $3.1 billion subsidy. The project continues Japan's broader strategy of strengthening domestic semiconductor manufacturing through financial incentives aimed at attracting leading global chipmakers. Micron has already made Hiroshima one of its most advanced DRAM manufacturing sites. In 2024, the company announced a major investment that introduced EUV lithography into production, enabling the transition from its 1-beta DRAM process to the more advanced 1-gamma node. The new HBM expansion builds on those earlier upgrades while increasing the site's strategic importance within Micron's manufacturing network. Beyond expanding its own fabrication facilities, Micron has also pursued manufacturing partnerships to accelerate capacity growth. This diversified approach allows the company to respond more quickly to rising demand while reducing the time required to bring additional production online. Competition within the HBM market remains intense. SK hynix currently holds the leading position and supplies much of the HBM used by NVIDIA's AI accelerators, while Samsung continues expanding its own production capabilities. Micron, however, has steadily increased shipments over the past several product generations and is expected to strengthen its market position as new capacity becomes operational. Industry forecasts suggest Micron could eventually account for roughly one-quarter of the HBM market while representing approximately 20% of total HBM shipments. Combined with recent investment announcements from Samsung and SK hynix, the Hiroshima expansion illustrates how the world's leading memory manufacturers are preparing for sustained AI-driven demand throughout the remainder of the decade. ProjectDetails CompanyMicron Technology LocationHiroshima, Japan Primary FocusHigh Bandwidth Memory (HBM) production Investment$9.2 billion Government SupportApproximately $3.1 billion (METI) Production StartSecond half of 2028 Previous Hiroshima Upgrade1-gamma DRAM process with EUV lithography Market ObjectiveExpand HBM production and increase market share Source: TrendForce

Micron's mega US expansion: Is the stock poised for more upside? - Micron unveils $250 billion investment plan

Micron's mega US expansion: Is the stock poised for more upside? 1/7 Micron unveils $250 billion investment plan Micron has announced plans to invest more than $250 billion in the United States through 2035, increasing its previous commitment of $200 billion. The investment aims to expand domestic semiconductor manufacturing to meet rising demand for AI chips and advanced memory solutions. The announcement boosted investor confidence and sent the company's shares higher. (Sources: TradingKey, CNBC, Reuters) 2/7 AI boom drives expansion The investment comes as artificial intelligence fuels unprecedented demand for high-bandwidth memory (HBM) and DRAM chips. Micron plans to significantly expand its US manufacturing footprint to support hyperscale data centres, cloud providers and AI infrastructure, positioning itself to benefit from the long-term AI boom. 3/7 Strengthening the chip supply chain Alongside its manufacturing expansion, Micron has committed an additional $3 billion to strengthen the US semiconductor supply chain. About $500 million will support GlobalWafers' silicon wafer facility in Texas under a long-term supply agreement, helping secure a critical component used in chip production. 4/7 Investors cheer the announcement Micron shares surged more than 6% after the investment plan was unveiled, reflecting optimism about the company's long-term growth prospects. The announcement also lifted sentiment across the broader semiconductor sector, with investors viewing the move as a strong commitment to capitalise on the AI-driven technology cycle. 5/7 Major boost for US manufacturing The investment will support Micron's expansion projects across New York, Idaho and Virginia, reinforcing efforts to bring more semiconductor production back to the United States. The company expects the initiative to generate over 90,000 jobs, including construction, manufacturing and supply-chain roles, providing a significant boost to the domestic economy. 6/7 Analysts remain bullish Market analysts believe Micron is well positioned to benefit from robust AI-related demand, particularly for advanced memory chips used in next-generation computing. Continued investments by major technology companies in AI infrastructure are expected to support Micron's revenue and earnings growth over the coming years. 7/7 The bottom line Micron's $250 billion investment plan marks one of the largest commitments to US semiconductor manufacturing in recent years. By expanding production capacity and strengthening its supply chain, the company is positioning itself to capture growing AI demand while supporting America's efforts to build a more resilient domestic chip industry.

Micron Begins $9.3 Billion Japan Plant Expansion To Boost AI Chip Production - Micron Technology (NASDAQ:

US semiconductor giant Micron Technology (NASDAQ:MU) has started its expansion work on a factory in Japan that will mass‑produce cutting‑edge semiconductors for generative AI and other applications. The Boise, Idaho‑based company will invest about $9.3 billion in factory expansion, NHK World reported, citing Japan's Ministry of Economy, Trade and Industry. The ministry will provide about $3.3 billion in subsidies, Japan's international public broadcasting service reported. Construction is expected to proceed in phases at the company's new Hiroshima Prefecture plant in western Japan. The installation of semiconductor manufacturing equipment is scheduled to begin in the first half of 2028, according to NHK World. Micron CEO Sanjay Mehrotra joined senior Japanese officials on Saturday as the company broke ground on its new Hiroshima plant. Economy, Trade and Industry Minister Akazawa Ryosei attended the ceremony, underscoring Tokyo's commitment to expanding advanced semiconductor manufacturing capacity. "When American boldness meets Japanese craftsmanship, you do not get a compromise," Mehrotra said during the ceremony. "You get the best in the world." Akazawa said that semiconductors were extremely important strategic materials from the perspective of economic security. Micron currently produces DRAM memory semiconductors at the factory. "Demand for semiconductors is expected to grow rapidly as we enter the age of AI," Ryosei said. "It is extremely important to establish a domestic manufacturing base for semiconductors, including DRAM, and to ensure a stable supply system." Micron first acquired the facility in 2013 through its purchase of bankrupt DRAM maker Elpida Memory. Elpida's assets included the 300mm DRAM fab in Hiroshima Prefecture. Micron's Expansion Push The expansion is part of a global ramp-up by memory makers to meet demand for AI. Micron manufactures dynamic random-access memory, or DRAM, a key component in a wide range of devices, including cell phones, laptop computers, servers, and more. In January, Micron broke ground on a $100 billion production site near Syracuse, New York. With up to four fabs, this will be the largest semiconductor facility in the US, Micron said. In June last year, the company said it would spend $200 billion to expand domestic manufacturing in the US. That included a second memory fabrication plant in Boise. Micron's first Idaho fab will start its DRAM output at the start of 2027. The second Idaho facility and four planned New York fabs would help Micron reach its goal of producing 40% domestically. Micron's manufacturing facilities are expected to create about 75,000 domestic jobs over the next 20-plus years, the company said. They will strengthen US economic and national security, furthering American innovation and competition for years to come. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Micron breaks ground on $9 billion western Japan plant expansion

Micron Technology on Saturday broke ground on the expansion of its factory in western Japan, a ¥1.5 trillion ($9.3 billion) undertaking to produce advanced memory chips. The Boise, Idaho-based company is building the facility in Hiroshima to make chips such as high-bandwidth memory crucial for AI processors like Nvidia's, with shipments to start around the summer of 2028. Japan's Ministry of Economy, Trade and Industry has allocated up to ¥500 billion to help cover the cost. The move is part of a global rampup by the U.S. company to meet demand for AI. Micron is building two leading-edge fabs in Boise and in January held a groundbreaking ceremony for a $100 billion production site outside Syracuse, New York, part of a pledge to increase DRAM production on American soil. "Micron's very first HBM production wafer -- for the memory technology at the heart of AI -- was made right here in Hiroshima," Micron CEO Sanjay Mehrotra said during a ceremony attended by central and local government officials. "When American boldness meets Japanese craftsmanship, you do not get a compromise. You get the best in the world." The factory expansion in Japan will help Micron raise power and transmission efficiency in chips needed for AI services and self-driving vehicles. Along with funds to support research and development, the Japanese government has earmarked roughly ¥775 billion for the U.S. company to date. Since 2021, the Asian country has set aside tens of billions of dollars of support for semiconductors and AI, seeking to gain leadership in a sector seen as central for national security. Last month, Prime Minister Sanae Takaichi released a roadmap targeting private and public investment into chips and AI to the tune of ¥101.6 trillion through March 2041, without giving a breakdown on how much would come from government coffers. "The Hiroshima factory's strength lies in its ability to quickly deliver cutting-edge and high-performance products to customers," said Kota Nosaka, representative director of Micron's Japan unit. "Creating next-generation chips here is directly tied to Micron's strategy." Micron took possession of the Hiroshima factory when it acquired bankrupt Japanese DRAM maker Elpida Memory Inc. in 2013. Japan is home to many corporate linchpins in advanced chip materials and gear, but it's largely ceded leadership in finished semiconductors. Roughly 80% of chip materials the Hiroshima factory needs now comes from Japan, Nosaka said.

Micron breaks ground on $9.3bn Japan expansion to boost AI memory output By Investing.com

Investing.com -- Micron Technology has broken ground on a ¥1.5 trillion ($9.3 billion) expansion of its semiconductor facility in Hiroshima, Japan, as the U.S. memory chipmaker ramps up production to meet growing demand for artificial intelligence applications, Bloomberg reported. The expanded facility will manufacture advanced memory products, including high-bandwidth memory (HBM) chips used in AI processors such as those developed by Nvidia. Commercial shipments are expected to begin around the summer of 2028. Japan's Ministry of Economy, Trade and Industry has committed up to ¥500 billion toward the project. Including research and development support, government backing for Micron's operations in Japan now totals about ¥775 billion. The investment forms part of Micron's broader global expansion strategy. The company is also building leading-edge semiconductor plants in Boise, Idaho, and a $100 billion manufacturing complex near Syracuse, New York, to increase DRAM production capacity. Demand for advanced memory chips has surged as technology companies accelerate investments in AI infrastructure. Industry rivals SK Hynix and Samsung Electronics are also expanding production to capitalize on the growing market for AI memory. Speaking at the groundbreaking ceremony, Chief Executive Sanjay Mehrotra said Micron's first HBM production wafer was manufactured in Hiroshima, adding that the new facility will strengthen the company's ability to deliver next-generation memory products. Japan has made semiconductor manufacturing a strategic priority, committing tens of billions of dollars in support since 2021 as it seeks to rebuild its domestic chip industry and strengthen supply chain resilience. Last month, Prime Minister Sanae Takaichi unveiled a long-term roadmap targeting ¥101.6 trillion in combined public and private investment in semiconductors and AI through 2041.