Micron Plots $200 Billion U.S. DRAM Buildout

Micron Technology (NASDAQ:MU) is boosting its U.S. memory-manufacturing and R&D investment to $200 billion, aiming to onshore 40 percent of its DRAM output.
The plan calls for two new high-volume fabs in Idahoone slated to start DRAM production in 2027four more fabs in New York, and an expanded, modernized facility in Virginia, alongside advanced HBM packaging and research initiatives.
To finance the buildout, Micron has locked in $275 million under the CHIPS and Science Act and is eligible for up to $6.4 billion in direct funding for its Idaho and New York sites.
CEO Sanjay Mehrotra said the move underscores our commitment to driving innovation and strengthening the domestic semiconductor industry, while Commerce Secretary Gina Raimondo added the investment will ensure the U.S. advances its lead across critical industries like AI, automotive, and aerospace and defense.
Amazon (NASDAQ:AMZN) Web Services chief Matt Garman praised the expansion as a significant milestone for the semiconductor industry. Even as shares dipped 0.21 percent on the news, analysts note that onshoring DRAM production could shorten supply chains, improve margin visibility and reduce geopolitical risk.
Why It Matters: With global memory demand surgingespecially for AI applicationssecuring a domestic production base could give Micron a strategic edge and help the U.S. lessen dependence on overseas fabs.
Additionally, Micron Technology has rebounded from earlier lows and now carries a 12-month price target of $121.82, suggesting a modest 5.26% upside. The projections vary widely, with a high-end forecast of $172 and a low of $60, signaling some uncertainty. After dipping below $70 earlier this year, the stock has climbed steadily and analysts seem cautiously optimistic moving forward.
This article first appeared on GuruFocus.

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