Micron Expands AI Chip Bet With $250 Billion US Plan

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•  09 Jul 2026
 

$MU Micron Technology said it will invest more than $250 billion in the United States by 2035, a major expansion of its previous investment plan. The decision comes against the surge in demand for memory chips used in artificial intelligence systems, and alongside the Trump administrations policy to encourage domestic chip manufacturing. The new investment scope is $50 billion higher than the plan the company announced last year. The market viewed the move as a signal that Micron expects demand for memory chips to keep growing for years, and the companys stock jumped by about 8% in trading following the announcement.

At the center of the expansion plan is the construction of a large manufacturing campus in New York State. According to the company, the project is progressing faster than planned, with timelines more than a quarter ahead of the original schedule. At the same time, Micron continues to expand manufacturing operations in Idaho and Virginia. The company estimates that the three projects together are expected to create more than 90,000 direct and indirect jobs in the United States.

For Washington, this is part of the broader effort to bring chip manufacturing back onto US soil and reduce dependence on supply chains outside the United States. The move aligns with the policy advanced by the Trump administration to strengthen the domestic semiconductor industry. In recent years, the supply of advanced chips has become a strategic issue, both because of competition with China and because of the importance of these components to the defense, cloud and artificial intelligence industries. For investors, the announcement reinforces the link between industrial policy, institutional flows and long-cycle AI infrastructure demand.

Alongside the expansion of manufacturing capacity, Micron said it will invest up to $3 billion in strengthening the American supply chain for the semiconductor industry. Of that amount, $500 million will be directed toward expanding GlobalWafers silicon wafer plant in Texas. In addition, the two companies signed a 10-year supply agreement, under which GlobalWafers will provide Micron with silicon wafer production capacity, the key raw material in the chip manufacturing process. For Micron, the move is intended to secure the availability of essential components even during periods of high demand.

The company explained that stability in raw material supply has become more important as production volumes grow. The experience of recent years, which included disruptions in global supply chains, led many chipmakers to seek local and long-term supply sources. Micron is one of the main suppliers of memory chips used in artificial intelligence systems, including chips integrated into Nvidia systems. The surge in demand for data centers and AI models has significantly increased the need for advanced high-bandwidth memory.

Last month, the company reported that customers in the data center, consumer electronics and automotive segments had already committed to purchasing about $22 billion worth of memory chips. That figure strengthened its assessment that demand will remain high in the coming years. The announcement was received positively in the capital market because it differs from the recent trend among some large technology companies. While investors have begun to show skepticism about the massive investment levels of cloud giants in AI infrastructure, in Microns case they see the investment expansion as a response to existing demand and not only a bet on future demand.

The reaction was not limited to Microns stock. Other semiconductor stocks, including Applied Materials, KLA, Lam Research and ARM, also posted sharp gains, against the view that continued investment in chip manufacturing will support the entire industry value chain. Micron aims to manufacture about 40% of its DRAM chips in the United States. If the investment plan is fully executed, it will strengthen the position as one of the key beneficiaries of the combination between the artificial intelligence race and the US effort to bring chip manufacturing back onto domestic soil, with positioning tied to earnings momentum and potential multiple expansion.

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