Micron Technology announced on Thursday that it plans to invest more than $250 billion in the United States by 2035. The company said the investment will help expand chip manufacturing in the country. The company said the decision is driven by the huge demand for memory chips because of the AI boom. More companies are building AI systems, increasing the need for advanced memory chips.
Micron also said the investment supports President Donald Trump’s push to increase semiconductor manufacturing inside the United States. The new investment plan is $50 billion higher than the $200 billion plan Micron announced in June last year. The $200 billion commitment itself had already been increased by $30 billion from Micron’s earlier spending plans.
Micron supply chain investment
As part of the new announcement, Micron will invest up to $3 billion to strengthen the US semiconductor supply chain, according to Micron statement. Out of the $3 billion, $500 million will be invested in GlobalWafers’ 300-mm raw silicon wafer manufacturing facility in Sherman, Texas.
Micron and GlobalWafers have signed a 10-year supply agreement. The deal will ensure Micron gets enough raw silicon wafers for its future manufacturing plans. The agreement is expected to strengthen the US semiconductor manufacturing ecosystem by improving access to key raw materials.
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AI chip demand grows
Investors welcomed the announcement. Micron shares rose more than 6% in premarket trading after the news. Bloomberg reported that Micron’s spending will support projects in New York, Idaho and Virginia. The investments are expected to continue through 2035.
Micron is not the only company expanding because of AI. Competitors Samsung Electronics and SK Hynix are also spending hundreds of billions of dollars to increase chip production. Bloomberg said Samsung and SK Hynix together announced plans last week to invest up to $880 billion in projects including new chip factories. The US government has been trying to expand domestic semiconductor manufacturing since the CHIPS and Science Act was passed in 2022 under the Biden administration.
Micron is one of the companies expected to benefit from government efforts to grow the US semiconductor industry. Micron executive Ben Tessone said the investment and partnership with GlobalWafers will strengthen the US semiconductor supply chain and support future chip manufacturing, according to the company.
US Commerce Secretary Howard Lutnick welcomed Micron’s $3 billion investment, saying it will strengthen the US semiconductor supply chain, economy and domestic manufacturing.
US Trade Representative Jamieson Greer said memory chips are essential for satellites, cars, medical equipment and defence systems. Greer said Micron’s investment will create more jobs, improve supply chain resilience and strengthen the country’s semiconductor industry, as per Micron statement.
Texas gets big boost
US Senator John Cornyn praised Micron’s $500 million investment in GlobalWafers’ Texas facility. He said the project will expand the Sherman plant, create jobs and improve America’s chip manufacturing capabilities.
Congressman Pat Fallon said Micron’s investment will strengthen US chip manufacturing, support national security and bring more investment to North Texas.
Sherman Mayor Shawn Teamann said the city has become an important part of the US semiconductor industry because of billions of dollars in investments and thousands of new jobs. The mayor said Micron’s support for GlobalWafers’ expansion is a major step forward for the US semiconductor industry, Texas and the city of Sherman.
Overall, Micron’s announcement highlights the growing race to build more semiconductor manufacturing capacity in the United States as AI demand continues to grow and governments push for stronger domestic supply chains.
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