Micron to invest $40 billion in memory manufacturing in U.S.

Micron Technology will invest $40 billion at the end of the decade to build out memory manufacturing in the United States.

The investment is expected to result in 40,000 new American jobs, including approximately 5,000 high-paying technical and operational positions at Micron.

It will help with education, workforce training, transportation, and a number of other services.

The move will be supported by the CHIPS and Science Act. The legislation was signed into law Tuesday and allocates $52.7 billion for American semiconductor research, development, manufacturing and workforce development.

Micron President and CEO Sanjay Mehrotra believes that the CHIPS and Science Act is an important step towards solidifying American semiconductor leadership for decades to come. The US relies on East Asia for 75% of global production.

In the next decade, this legislation will allow Micron to grow domestic memory production from less than 2% to up to 10%, making the U.S. home to the most advanced memory manufacturing and R D in the world, he said.

Micron is finalizing its U.S. expansion plans and will share additional details in the coming weeks. The chipmaker expects to start production in the second half of the decade.

Micron has previously announced that they will invest more than $150 billion in leading edge memory manufacturing as well as research and development over the next decade. The company has warned of a widening of customer inventory adjustments due to macroeconomic factors and supply chain constraints.

Since our June 30, 2022 earnings call, our expectations for CY 22 industry bit demand growth for DRAM and NAND have declined, so we expect a challenging market environment in FQ 422 and FQ 123, the company said in a Securities and Exchange Commission filing Tuesday.

Micron expects fourth-quarter revenue to come in at or below the low end of its previously disclosed guidance range. It expects significant sequential declines in revenue and margins and negative cash flow in the first quarter of 2023.

In addition to Micron, Qualcomm and GlobalFoundries announced a new partnership that includes $4.2 billion to manufacture chips in an expansion of the GlobalFoundries upstate New York facility. Over the next five years, Qualcomm plans to increase semiconductor production in the U.S. by up to 50%.