Micron expands US investments to $200 billion amid Trump's onshoring push
FILE PHOTO: Micron Technology's solid-state drive for data center customers is presented at a product launch event in San Francisco, U.S., October 24, 2019. REUTERS/Stephen Nellis
(Reuters) -Memory chipmaker Micron Technology said on Thursday it is expanding its U.S. investments to about $200 billion, planning to dole out $150 billion for manufacturing amid President Donald Trump's push to onshore sprawling semiconductor supply chains.
This marks an additional investment of $30 billion, beyond prior plans, Micron said, sending its shares down about 1% in premarket trading.
Micron now joins a litany of U.S. tech firms and chipmakers who have announced hundreds of billions of dollars in domestic investments against the backdrop of Trump's efforts to produce more semiconductors on American soil.
AI chip leader and Micron customer Nvidia said in April it is planning to build AI servers worth as much as $500 billion in the U.S. over the next four years with help from partners such as Taiwan's TSMC .
Micron's additional investment will center around building a second leading-edge memory fab in Boise, Idaho and expanding a manufacturing facility in Manassas, Virginia.
"These investments are designed to allow Micron to meet expected market demand, maintain share and support Micron's goal of producing 40% of its DRAM in the U.S," the company said, referring to a type of widely employed memory chip.
Micron's investment aims to bring advanced packaging capabilities to the U.S.- a manufacturing technique essential to high bandwidth memory (HBM), which is employed extensively in the AI market, the company said. HBM is often characterized as a type of stacked DRAM technology.
"Micron's investment in advanced memory manufacturing and HBM capabilities in the U.S., with support from (the) Trump administration, is an important step forward for the AI ecosystem," Nvidia CEO Jensen Huang said in a statement.
The company will also dedicate about $50 billion to R&D, Micron said.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D'Silva and Maju Samuel)
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