Quick Overview

  • Micron Technology announced on Thursday that, driven by surging demand for its DRAM products, the company has increased its U.S. investment commitment to more than $250 billion by 2035.
  • Additionally, the company will invest up to $3 billion to strengthen the domestic semiconductor supply chain. A company spokesperson said in an email that this investment is not included in Micron's increased total commitment.
  • The announcement comes as Micron has completed site work for its $100 billion semiconductor manufacturing campus in Clay, New York, in less than six months ahead of schedule, and has moved into the vertical construction phase.

Deep Insights

Micron said this investment reflects its commitment to stabilizing and improving the supply of critical manufacturing materials in the U.S., while enhancing supply security and flexibility.

The commitment also supports the continued growth in demand for advanced memory and storage solutions driven by artificial intelligence and other systems that process massive amounts of data.

According to the press release, Micron expects the increased investment to support its long-term goal of producing 40% of its DRAM products in the U.S.

The funding also reflects the company's confidence in its technology and memory products, a confidence stemming from rising demand in AI infrastructure and data center end markets. Micron's fiscal 2025 third-quarter revenue reached $41.5 billion, a 346% year-over-year increase from $9.3 billion in the same period last year.

"We are only in the early stages of significant innovation and productivity gains that will unfold across all sectors of the global economy over time," said Sanjay Mehrotra, Micron's president and CEO, in prepared remarks in June.

Mehrotra added that the company expects data center growth to be driven by AI features in smartphones, personal computers, and new consumer electronics, as well as by automotive, industrial operations, and robotics.

"The exciting possibilities enabled by robotics, humanoid robots, and fully autonomous vehicles point to a strong long-term demand environment for memory and storage," the CEO said.

However, growing demand highlights memory and storage supply shortages, which Mehrotra said "will take a considerable amount of time to improve." Supply growth depends on massive new fab expansions, which are "large-scale, complex, and time-consuming," he added.

"The pace of expansion is constrained by multiple factors, including long lead times for global fab construction, shortages of skilled workers in critical industries, complex regulations including permitting, and the need for enhanced energy infrastructure," Mehrotra said. "Meanwhile, memory process technology—one of the most advanced technologies developed and manufactured in semiconductors—is becoming more complex with each new node."

Machine learning systems are powered by AI chips such as graphics processing units (GPUs) and application-specific integrated circuits (ASICs). According to IBM, AI chips can meet the high-intensity algorithmic demands that central processing units (CPUs) cannot.

However, Mehrotra noted that the performance and capacity of GPUs, ASICs, and CPUs depend on the performance and capacity of the memory subsystem.

"This has given rise to a more complex memory hierarchy, providing Micron with greater differentiation opportunities than at any time in history," he said. "It also elevates memory's role in the AI world to that of a strategic asset."

Micron is taking steps to secure and stabilize the U.S. supply chain, including investing up to $3 billion in its suppliers such as GlobalWafers. The investment includes $500 million to expand GlobalWafers' manufacturing and R&D capabilities at its 300mm raw silicon wafer plant in Sherman, Texas.

The two companies also signed a 10-year supply agreement and plan to collaborate on developing wafer technology and processes to support future semiconductor manufacturing needs, according to the press release.

"Through close collaboration with Micron, we are not only continuing to meet market demand for high-quality semiconductor wafers but also helping to strengthen local manufacturing capabilities and supply chain resilience, working with Micron to support the continued growth of the U.S. semiconductor ecosystem," said Doris Hsu, CEO of GlobalWafers, in a statement.

Micron completed site work in partnership with construction management company Gilbane Building, and according to the press release, Micron paid approximately $675 million to local contractors, suppliers, and subcontractors.

The Clay manufacturing campus will include four facilities, and the site is expected to begin production in 2030, according to Syracuse.com.

Other projects Micron is advancing include two fabs in Boise, Idaho. The first is expected to produce its first wafer in mid-2027, with the second coming online at the end of 2028.

Additionally, Micron has begun producing 1-alpha DDR4 technology at its fab in Manassas, Virginia, which will support customers in its automotive, industrial, medical, aerospace, and defense markets.