Micron Plans $150B in Memory Chip Manufacturing Expansion
October 25, 2021
Technology intends to invest more than $150 billion globally over the
next decade in leading-edge memory manufacturing and research and
development (R&D), including potential U.S. fab expansion. Micron’s
investment will address increasing demand for memory that is essential
to all computing.
Memory and storage are a growing portion of the global semiconductor
industry, and today represent approximately 30% of the semiconductor
market. Secular growth drivers like 5G and AI will expand usage of
memory and storage across the data center and the intelligent edge, and
in areas like automotive and a diversity of user devices.
“Memory is at the leading edge of semiconductor manufacturing and fuels
everything from feature-rich 5G smartphones to the AI-enabled cloud,”
said Micron President and Chief Executive Officer Sanjay Mehrotra.
“Micron’s leadership in both DRAM and NAND technologies and the strength
of our roadmap enable us to invest more than $150 billion with
confidence to extend our industry-leading memory innovation into the
next decade, and deliver differentiated products to our customers. We
look forward to working with governments around the world, including in
the U.S. where CHIPS funding and the FABS Act would open the door to new
industry investments, as we consider sites to support future expansion.”
memory manufacturing at competitive cost requires large-scale fabs that
have the potential to create tens of thousands of new jobs and
significant economic growth. U.S. memory manufacturing costs run 35-45%
higher than in lower-cost markets with established semiconductor
ecosystems, making funding to support new semiconductor manufacturing
capacity and a refundable investment tax credit critical to potential
expansion of U.S manufacturing as part of Micron’s targeted investment.
“The growth of the data economy is driving increased customer demand for
memory and storage,” said Executive Vice President of Global Operations
Manish Bhatia. “Leading-edge memory manufacturing at scale requires
production of advanced semiconductor technology that is pushing the laws
of physics, and our markets demand cost-competitive operations.
Sustained government support is essential for Micron to ensure a
resilient supply chain and reinforce technology leadership for the long
Micron has a global manufacturing and R&D network that spans 13
countries. The company, which has amassed over 47,000 patents in its
more than 40-year history, invests billions of dollars annually in R&D.
The majority of that investment occurs in the U.S. where Micron operates
one of the world’s most advanced R&D centers at its Boise, ID
headquarters, and conducts leading-edge research, design and development