Micron Increases U.S. Investment by $30 Billion to Strengthen AI-Driven Semiconductor Growth

Micron Technology Inc. (NASDAQ: MU) has unveiled an expanded commitment to U.S.-based semiconductor manufacturing and research, raising its total planned investment to approximately $200 billion. This enhanced strategy — which reflects a $30 billion increase from prior plans — is in response to surging demand for artificial intelligence (AI) technologies and aims to fortify domestic chip production and innovation.

The updated initiative, supported by the Trump administration, allocates $150 billion for manufacturing infrastructure and $50 billion for research and development. It is projected to create around 90,000 direct and indirect jobs, contributing significantly to the American semiconductor workforce.

Major Expansion in Idaho and New York

Micron's revised plan includes the construction of a second cutting-edge memory fabrication facility in Boise, Idaho, and the modernisation of its existing site in Manassas, Virginia. It will also establish advanced packaging capabilities for High Bandwidth Memory (HBM), positioning the U.S. as a key player in AI memory solutions.

The company's blueprint features up to six high-volume memory fabs across Idaho and New York. With these developments, Micron aims to manufacture 40% of its DRAM chips in the United States, enhancing supply chain resilience and competitive advantage amid growing global demand for AI infrastructure.

Timeline and Production Goals

Work is already underway on the first Idaho-based fab, with production expected to begin in 2027. Plans for a second fab at the same site will further scale DRAM output. Additionally, site preparations in New York are set to begin this year, pending final regulatory approvals.

Industry and Government Support

Micron’s ambitious investment aligns with federal efforts to revitalise the domestic chip industry. The company is set to receive up to $6.4 billion in direct funding through the CHIPS and Science Act, and it may benefit from incentives such as the Advanced Manufacturing Investment Credit (AMIC). Legislative proposals like the Building Advanced Semiconductors Investment Credit Act could further support these initiatives.

CEO Sanjay Mehrotra emphasised the broader impact of the project:

"This $200 billion investment underscores Micron’s dedication to U.S. semiconductor leadership. It will drive innovation, create tens of thousands of high-skilled jobs, and ensure a reliable domestic supply of chips — essential for both economic growth and national security."

Backing from AI and Tech Giants

Industry leaders have welcomed the announcement. Nvidia’s CEO Jensen Huang described the investment as “a pivotal step for the AI ecosystem,” especially given the growing need for HBM and memory innovation. Microsoft CEO Satya Nadella echoed the sentiment, highlighting the importance of a strong U.S. semiconductor foundation for future innovation and competitiveness.

Workforce Development Investment

Beyond manufacturing, Micron is committing over $325 million to workforce development in Idaho, New York, and Virginia. The initiative includes academic collaborations, new curriculum design, and hands-on training programmes — all aimed at building a skilled talent pipeline for the high-tech industry.

(Sources: investing.com, reuters.com)