Micron shares rise 7% after announcing billions more in U.S. chipmaking investments

Shares of Micron Technology surged by 7% on Thursday following the announcement of a substantial investment initiative aimed at strengthening the U.S. semiconductor supply chain. The company has committed to ramping up its spending in the United States, with plans extending through 2035. This strategic investment plan includes a significant allocation of up to $3 billion, of which $500 million will be directed to GlobalWafers, based in Taiwan, to enhance wafer development and production at its Texas facilities. Additionally, a 10-year supply agreement has been established to secure raw silicon wafer capacity, a move deemed essential by Micron’s Chief Procurement Officer, Ben Tessone, for the company's long-term growth and technological advancements. In a related update, Micron also revealed an increase in its overall planned investment in the U.S. to a staggering $250 billion by 2035. This marks an increase of approximately $50 billion, driven by the soaring demand for memory products as the artificial intelligence sector continues to expand rapidly. The positive news also had a ripple effect in the semiconductor industry, with shares of other key players like Applied Materials, KLA Corp, and Lam Research rising by 7%, and ARM Holdings seeing an impressive 11% increase on the same day.