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Micron Technology (NASDAQ:MU) has expanded its fabrication and research and development plans in the U.S. to $200B to meet growing market demand and eventually produce 40% of its DRAM domestically, the company announced today.
The plan calls for building two high-volume fabs in Idaho, four high-volume fabs in New York, expanding and modernizing an existing fab in Virginia, and developing HBM packaging capabilities and R&D initiatives in the U.S. The first Idaho fab is slated for DRAM output in 2027, which will serve the growing artificial intelligence market.
Micron did not reveal when the New York fabs would enter production, but said the second Idaho fab would likely come online first. The memory maker has finalized $275M in funding through the CHIPS and Sciences Act, which will onshore Micron’s 1-alpha DRAM node.
“Micron’s U.S. memory manufacturing and R&D plans underscore our commitment to driving innovation and strengthening the domestic semiconductor industry,” said Micron CEO Sanjay Mehrotra.
“In partnership with the Department of Commerce, Micron is announcing a $200B semiconductor manufacturing and R&D investment to bring the full spectrum of memory chip production back to the United States,” said U.S. Secretary of Commerce Howard Lutnick. “Micron’s planned investment will ensure the U.S. advances its lead across critical industries like AI, automotive, and aerospace and defense.”
Micron said its U.S. investments will be eligible for the Advanced Manufacturing Investment Credit, and the company has already secured support at the local, state and federal level. This includes up to $6.4B in CHIPS Act direct funding to support the construction of two Idaho fabs and two New York fabs, as well as the expansion and modernization of its Virginia fab.
“Micron’s investment in expanding memory manufacturing and advanced packaging in the U.S. is a significant milestone for the semiconductor industry,” said Amazon Web Services (AMZN) CEO Matt Garman.
The additional investments expand on Micron’s plans dating from 2022 to increase its chipmaking footprint in the U.S.