Micron Technology shares climbed 7% on Thursday after the memory chipmaker unveiled a sweeping expansion of its U.S. investment plans, underscoring its confidence that surging artificial intelligence demand will continue driving the semiconductor industry’s growth for years to come.
The company announced it will increase its planned U.S. investment to $250 billion through 2035, raising its previous commitment by $50 billion as it moves to expand domestic manufacturing and secure critical supplies needed to support next-generation memory chips.
The announcement also included a new strategic investment of up to $3 billion aimed at strengthening the U.S. semiconductor supply chain, particularly the production of silicon wafers, one of the most essential raw materials used in chip manufacturing.
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As part of that initiative, Micron will invest $500 million in GlobalWafers, the Taiwan-headquartered silicon wafer manufacturer, to expand wafer development and production at the company’s facilities in Texas. The two companies have also signed a 10-year supply agreement that will secure long-term access to raw silicon wafer capacity, providing Micron with greater certainty over one of the industry’s most critical manufacturing inputs.
Silicon wafers form the foundation upon which semiconductor chips are built, making them indispensable to the production of memory chips used in data centers, smartphones, computers and AI systems.
By locking in long-term wafer supplies, Micron aims to reduce supply chain risks at a time when demand for semiconductors continues to outpace production capacity in several segments of the industry.
“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 a statement announcing the agreement.
Semiconductor manufacturers have been making efforts to localize more of their supply chains within the United States following years of disruptions caused by the COVID-19 pandemic, geopolitical tensions and growing concerns over dependence on overseas production.
The latest spending commitment also highlights the scale of investment required for Micron to meet the computing demands created by artificial intelligence. The rapid expansion of AI infrastructure has fueled record demand for advanced memory technologies, including high-bandwidth memory (HBM), DRAM and NAND flash storage, all of which are essential components in AI servers and data centers.
As technology companies race to build larger AI clusters, memory manufacturers have responded by accelerating investments in fabrication plants, manufacturing equipment and raw material supply agreements.
Micron’s decision to raise its planned U.S. investment to $250 billion through 2035 positions the company among the largest private investors in America’s semiconductor industry. The announcement aligns with a broader industry trend in which chipmakers are committing hundreds of billions of dollars to expand manufacturing capacity as governments encourage greater domestic production of strategically important technologies.
Investors welcomed the announcement, sending Micron shares sharply higher during Thursday’s trading session.
The optimism extended well beyond Micron.
The broader semiconductor sector rallied as investors interpreted the company’s increased spending as another signal that demand linked to artificial intelligence remains exceptionally strong. Shares of semiconductor equipment manufacturers Applied Materials, KLA Corporation, and Lam Research each gained around 7%, while chip designer Arm Holdings surged 11%. The gains reflected expectations that companies supplying manufacturing equipment and chip designs will benefit alongside memory producers as investment in AI infrastructure continues to accelerate.
Analysts note that the rally also reinforced confidence that semiconductor companies remain willing to commit substantial capital to future production despite ongoing investor debate about whether AI-related spending can maintain its current pace.
Over the past year, analysts have questioned whether technology companies’ massive investments in AI infrastructure will ultimately generate returns sufficient to justify their cost. However, Micron’s decision to expand its investment programme suggests the company expects demand for advanced memory products to remain robust well into the next decade.
The long-term agreement with GlobalWafers further demonstrates how semiconductor manufacturers are moving beyond simply expanding fabrication capacity to securing every stage of the production process. The semiconductor manufacturing chain depends on a complex network of suppliers providing raw materials, specialized equipment, chemicals, and advanced manufacturing technologies. Any disruption in those inputs can delay production and affect deliveries to customers.
Micron is thus attempting to reduce those risks and strengthen the resilience of its operations by investing directly in wafer manufacturing capacity while simultaneously securing decade-long supply agreements.
The announcement has also bolstered the growing importance of semiconductor manufacturing in the United States. Federal incentives aimed at expanding domestic chip production have encouraged manufacturers to announce new factories, research facilities and supplier partnerships as Washington seeks to reduce reliance on overseas semiconductor production and strengthen national supply chains.
For Micron, the latest investment underscores the company’s belief that artificial intelligence will remain one of the semiconductor industry’s most powerful growth drivers. This is because as AI models become larger and data centers require increasing amounts of memory, demand for advanced memory chips is expected to continue rising, supporting further investment across the semiconductor ecosystem.
Thursday’s market reaction suggests investors share that view. Rather than seeing Micron’s expanded spending as an added financial burden, the market interpreted it as evidence that one of the world’s leading memory manufacturers expects the AI boom and the demand for the chips that power it to remain strong for many years.