AI Memory Demand Explodes! Micron Boosts U.S. Investment to $250 Billion, Stock Jumps Nearly 5%

Micron Technology (MU-US) announced on Thursday (9th) that it will increase its long-term investment plan in the United States from the previously announced $200 billion to $250 billion, adding approximately $50 billion in capital expenditures by 2035 to expand U.S. memory chip manufacturing capacity. The company also unveiled a new round of strategic investments totaling up to $3 billion to further strengthen the semiconductor supply chain.

Spurred by the announcement, Micron's stock rose nearly 5% on Thursday, with the broader semiconductor sector also gaining strength.

Of the newly announced up to $3 billion in strategic investments, $500 million will be allocated to support Taiwan-based GlobalWafers in expanding its silicon wafer research, development, and manufacturing capacity in Texas. The two companies have also signed a 10-year supply agreement for raw silicon wafers, securing long-term wafer supply capabilities.

Ben Tessone, Micron’s Chief Procurement Officer, stated that ensuring stable supply of critical raw materials is a foundational element supporting Micron’s long-term growth and technology roadmap. He emphasized that this collaboration will help the company build a more resilient U.S. semiconductor supply chain.

In addition to supply chain investments, Micron announced that due to the rapid advancement of artificial intelligence (AI), which is driving strong demand for high-bandwidth memory (HBM), DRAM, and NAND Flash, the company is raising its total U.S. investment target by 2035 to $250 billion—$50 billion more than previously planned—to continuously expand advanced memory production capabilities within the United States.

The rapid expansion of AI data centers in recent years has led to soaring demand for high-performance memory. Micron is actively expanding its production capacity to meet the significantly increased requirements for memory capacity and speed in AI model training and inference computing.

Micron noted that construction of two new wafer fabrication plants at its headquarters in Boise, Idaho, is already fully underway. On Thursday, the company also completed the first concrete pour for its new fab in Clay, New York, officially commencing major construction of the facility.

Micron stated that once completed, the New York facility will become the largest semiconductor manufacturing site in U.S. history and one of the company’s most critical production hubs for the coming decades.

Boosted by the investment news, Micron’s stock surged nearly 5% on Thursday. Since 2026, the company’s stock has risen approximately 250%, and in May, it surpassed a $1 trillion market capitalization for the first time, becoming one of the newest semiconductor companies to join the trillion-dollar club.

Micron continues to benefit from the AI wave, with market analysts optimistic about sustained supply shortages for its high-bandwidth memory products, which are expected to drive strong financial performance. Analysts believe that Micron’s continued investment in the U.S. not only enhances advanced process production capacity but also aligns with U.S. government policies promoting semiconductor manufacturing reshoring and supply chain self-reliance.

Led by Micron, the broader semiconductor sector rose on Thursday, with Applied Materials (AMAT-US), KLA (KLAC-US), Lam Research (LRCX-US), and Arm Holdings (ARM-US) all closing higher, reflecting continued market confidence in robust growth trends in AI infrastructure and chip capital expenditures.