BofA warns Fed risks policy mistake with early rate cuts
BOISE, Idaho - Micron Technology, Inc. (NASDAQ:MU) announced plans on Thursday to invest approximately $200 billion in U.S. semiconductor manufacturing and research and development across facilities in Idaho, New York, and Virginia. According to InvestingPro data, Micron maintains a strong financial foundation for this expansion with a healthy current ratio of 3.13 and an overall Financial Health score of "GOOD," suggesting solid execution capability for such ambitious plans.
The investment includes $150 billion for domestic memory manufacturing and $50 billion for R&D, with the company estimating it will create 90,000 direct and indirect jobs. The announcement represents a $30 billion increase from Micron’s previous investment plans.
As part of the expansion, Micron will build a second leading-edge memory fabrication plant in Boise, Idaho, modernize its existing facility in Manassas, Virginia, and develop advanced packaging capabilities for High Bandwidth Memory (HBM) production in the United States.
The company has already secured a $275 million CHIPS Act direct funding award for its Virginia facility expansion, which will begin this year. Micron expects to have secured up to $6.4 billion in total CHIPS Act direct funding to support construction across its U.S. facilities.
Production at Micron’s first Idaho fab is scheduled to begin in 2027, with the second Idaho fab expected to come online before the first New York fab. Ground preparation in New York is planned to begin later this year following environmental review processes.
"This approximately $200 billion investment will reinforce America’s technological leadership, create tens of thousands of American jobs across the semiconductor ecosystem and secure a domestic supply of semiconductors," said Micron Chairman, President and CEO Sanjay Mehrotra in the press release statement.
Commerce Secretary Howard Lutnick added that the investment will "ensure the U.S. advances its lead across critical industries like AI, automotive, and aerospace & defense."
Micron anticipates all its U.S. investments will be eligible for the Advanced Manufacturing Investment Credit and has committed over $325 million to workforce development programs across Idaho, New York, and Virginia to support the industry’s growth.
In other recent news, Micron Technology has been selected by Nvidia as the first supplier for its next-generation memory solution, SOCAMM. This development positions Micron at the forefront of high-performance memory production for AI servers, giving it a competitive edge over rivals like Samsung and SK Hynix. Meanwhile, Citi analysts have raised their price target for Micron to $130, citing stronger-than-expected DRAM pricing, while UBS has increased its target to $120, noting stable demand for DDR memory. Mizuho analysts also raised their target to $130, highlighting Micron’s growth potential in the High Bandwidth Memory market.
Additionally, Micron has launched what it claims to be the world’s thinnest LPDDR5X memory, aimed at enhancing AI applications on smartphones with speeds of 10.7 Gbps and a 20% power saving. This new memory technology is expected to support innovative smartphone designs and improve AI response times for mobile devices. Micron’s advancements in EUV lithography and its commitment to cutting-edge memory solutions underscore its strategic focus on performance and efficiency. These recent developments reflect Micron’s ongoing efforts to maintain a strong position in the rapidly evolving memory and AI technology markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.