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Micron plans to invest $150 billion in semiconductor plants

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In the next ten years, Micron Technology, the second largest semiconductor company in the U.S. behind Intel, plans to invest $150 billion in semiconductor facilities. This is more than the $95 billion Intel invested previously. Micron also called on the Biden Administration to provide tax breaks and subsidies for plant expansions.

According to Wall Street Journal (WSJ) on the 20th, governments promised subsidies for semiconductors investments to prevent a global shortage. Accordingly, semiconductor companies are introducing their investment plans to benefit from the incentives and accelerate their expansion.

On the same day, Micron executives announced their investment plans and emphasized the need for government support. According to CEO Sanjay Merotra, the company intends to build a new factory with $150 billion to expand its semiconductor chip production site. “We are working with governments around the world, including those in the United States, to increase our supply capacity to meet demand expectations,” he said.

Micron currently produces most of its chips in Asia, including Japan, Singapore, and Taiwan. “The cost of building a semiconductor plant in the U.S. is 45 percent higher than abroad,” said Sumit Sandana, Micron’s chief commercial officer.

“Politicians should not complain that offshore semiconductor production poses a greater threat to U.S. security,”. “They should provide incentives such as tax breaks and subsidies to encourage production here,” he said.

The U.S. and Europe accounted for three-quarters of global semiconductor production capacity in the 1990s. Today, they account for less than a quarter.

Sandana said Micron has not decided where the U.S. semiconductor plant will be located.

According to Japanese media reports, Micron plans to invest 7 billion dollars in Hiroshima, Japan, to build a DRAM plant.

With sales of 2.1 billion dollars during the second quarter, Micron is the fifth largest semiconductor company in the world.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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