🏭 Micron raises investment plan to $200 billion!
Micron Technology $MU has announced a significant increase in its investment in US manufacturing and research. The total framework moves to $200 billion, making this plan one of the most ambitious in the history of the US semiconductor industry.
Political Background:
President Donald Trump has repeatedly pressed key companies to increase domestic chip production, threatening additional tariffs on semiconductors made abroad.
While the Biden-eraCHIPS & ScienceAct pledged $52.7 billion to develop the chip sector, the Trump administration is reevaluating the terms of the subsidies, but also signaling strong support for companies that invest "at home".
As part of this, Micron is expanding:
Manufacturing capacity in New York and Idaho, is building a second state-of-the-art DRAM fab in Boise, Idaho, and plans to expand operations in Virginia.
📦 Strategic importance of memory chips:
DRAMchips are the foundation of computing power, found in PCs, servers, cars, mobile networks and AI clusters.
In addition, Micron is developing HBM chips (high-bandwidth memory) chips.which are essential for scaling modern AI models.
As Jensen Huangsaid (Nvidia CEO): "Micron's investment in advanced memory in the U.S. is critical to the entire AI ecosystem."
🔬 Investment breakdown:
$150 billion: manufacturing (including factories and automation)
50 billion USD: research and development (next generation memory and materials)
90,000 new jobs, direct and indirect
USA wants to regain dominance in semiconductors - and companies like Micron, Nvidia or AMD are adapting their strategy accordingly.
What do you think of Micron?
They had enough problems at one time and I don't have the stock in my portfolio, but they have bounced back nicely and are growing solidly.
It's a very important company for this sector, but I only have $AVGO and $ASML in my portfolio so far.
It's a great company and I like the ro focus, but the stock is getting expensive.