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Micron Pledges Up to $3 Billion to Bolster US Semiconductor Supply Chain
Micron Technology said on Thursday it plans to invest up to $3 billion to strengthen the U.S. semiconductor supply chain, a strategic move aimed at securing critical materials amid soaring demand driven by artificial intelligence. The memory chip firm's shares extended gains on the news, rising in premarket trading.
Details of the Plan
As a key part of the initiative, Micron will provide $500 million in strategic financing to advance GlobalWafers’ 300mm raw silicon wafer manufacturing facility in Sherman, Texas. This investment is designed to shore up the domestic supply of a foundational component for modern chipmaking.
In conjunction with the financing, the two companies will enter into a 10-year supply agreement. According to Micron's statement, this long-term deal will guarantee the company access to a significant volume of raw silicon wafer capacity, which is essential to support its future manufacturing plans in the United States.
AdMarket Impact
Investors reacted positively to the announcement, which reduces potential supply chain risks for the chipmaker. Shares of Micron (NASDAQ: MU) were trading more than 6% higher in premarket activity following the release of the news.
The investment highlights the industry's focus on building more resilient and localized supply chains, particularly for critical materials. Securing a stable, long-term supply of wafers is crucial for Micron to meet the surging demand for its memory products used in AI servers and other advanced technologies.