Micron plans to spend about $200 billion on domestic production capacity over the long term. The multistate program centers on two additional fabrication plants in Idaho and a 600,000-square-foot complex in Clay, New York. Groundbreaking for the New York site took place Friday, with Commerce Secretary Howard Lutnick attending the ceremony. Micron has earmarked up to $100 billion for that facility alone, although full build-out will occur in stages.
The construction schedule includes extensive clean-room space and advanced lithography tools and will take several years to complete. While those projects progress, the company is also pushing to raise output at existing fabs to address short-term supply gaps.
Forecasts for server memory illustrate the speed of the market shift. At the start of calendar 2025 Micron had projected roughly 10% annual growth for this segment, but by year-end demand was trending in the “high teens,” according to Mehrotra. Personal-computer DRAM and solid-state drives have likewise outpaced internal expectations, adding further pressure to constrained inventories.
Management now anticipates industrywide tightness to persist through at least 2027. That outlook reflects the purchasing needs of major AI chip customers—including Nvidia, Advanced Micro Devices and Google—that rely on high-bandwidth DRAM to maximize accelerator performance.
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As shortages deepen, market researchers cited by CNBC expect contract prices for memory components to climb about 55% in the first quarter. Rising prices have lifted margins across the supply chain and provided capital for expansion plans such as Micron’s.
Friday’s stock move followed TSMC’s earnings report a day earlier. Strong sales of advanced packaging and 3-nanometer processes used in AI accelerators signaled that overall investment in data-center hardware remains on an upward trajectory, bolstering sentiment toward memory suppliers.
Micron’s U.S. projects align with broader federal efforts to rebuild domestic semiconductor manufacturing capacity. The CHIPS and Science Act, enacted in 2022, offers incentives for companies that establish or expand facilities on American soil, aiming to reduce reliance on overseas production.
While new fabs will not contribute significant wafer output for several years, Micron expects incremental gains from equipment upgrades and process optimizations at current plants. Together with longer-term greenfield investments, these measures are intended to secure supply for anticipated AI demand while positioning the company to benefit from favorable pricing trends.
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