Micron gains after breaking ground on new facility in decade-long, $24 billion investment plan
Micron sees an AI boom and wants to sell more chips into it.
On Monday evening, the company announced that it broke ground on an additional wafer fabrication facility at its complex in Singapore, kicking off a decade-long, $24 billion project.
Shares are up more than 3.5% as of 4:05 a.m. ET.
Of note: this is an expansion of NAND capacity, rather than DRAM. The latter contains high-bandwidth memory and makes up the lion’s share of Micron’s revenues.
“Wafer output is scheduled to begin in the second half of calendar 2028, helping Micron address growing market demand for NAND technology driven by the rapid expansion of AI and data-centric applications,” per the press release.
Micron’s rivals in South Korea enjoyed strong sessions on Tuesday despite President Donald Trump threatening to raise tariffs on the nation’s exports to the US to 25%, from 15%. The KOSPI Index rebounded from early losses with SK Hynix and Samsung soaring. SK Hynix’s outsized gains appeared to be fueled by a report from local media that it will be the sole supplier of HBM3E for Microsoft’s new Maia 200 chip, which was unveiled on Monday.
As we’ve discussed before, the supply crunch in memory and storage is the shortage that traders have wanted exposure to for much of the past five months.
The beneficiaries of memory chip giants’ quest to increase capacity include semicap stocks like ASML, Lam Research, KLA Corp, and Applied Materials, which provide the equipment used in new fabs.
