Micron rises as US chip investment plan grows to $250bn

Micron shares rose 7% on Thursday after the memory-chip maker announced up to $3 billion in new strategic investments tied to the US semiconductor supply chain. The company also said in a separate announcement that it would increase planned US investment to $250 billion through 2035, about $50 billion more than its prior plan.

The move comes as demand for memory tied to the artificial intelligence buildout has risen sharply, according to CNBC. Memory chips are central to AI infrastructure because data centers require high volumes of fast storage and processing support, placing pressure on suppliers to expand capacity and secure key inputs.

Micron said the new investment package includes $500 million for GlobalWafers, a Taiwan-headquartered supplier, to expand wafer development and manufacturing at its Texas facilities. The arrangement also includes a 10-year supply agreement for raw silicon wafer capacity, according to Micron.

That structure gives Micron a longer-term claim on a key production input while providing capital support for added domestic capacity. Raw silicon wafers sit early in the semiconductor production chain, so access to supply can affect the ability of chipmakers to meet customer demand over time.

“Securing a reliable supply of critical input materials is essential to supporting Micron’s long-term growth and technology roadmap,” Ben Tessone, Micron’s chief procurement officer, said in the company’s press release.

Chip stocks advance

The announcement coincided with broader gains across semiconductor-linked equities. CNBC reported that Applied Materials, KLA Corp. and Lam Research each rose 7% on Thursday, while Arm Holdings advanced 11%.

The moves reflected investor attention on companies exposed to semiconductor manufacturing equipment, design and supply-chain capacity. Applied Materials, KLA and Lam Research are closely followed as suppliers to chip fabrication operations, while Arm Holdings is a major name in chip architecture.

Micron’s expanded US plan places the company among chipmakers increasing domestic commitments as governments and customers focus on supply resilience. The company framed the spending as part of an effort to strengthen the US semiconductor supply chain and support its longer-term technology roadmap.

The $250 billion figure covers Micron’s planned US investment through 2035, according to the company announcement cited by CNBC. The newly disclosed increase, roughly $50 billion, adds to an existing capital plan rather than replacing it.

The 10-year GlobalWafers supply agreement also illustrates how chipmakers are pairing direct investment with contracted access to materials. Such agreements can help align supplier expansion with expected demand, while leaving execution dependent on facility buildout, production timing and end-market conditions.

This story draws on original reporting from CNBC.