Micron to spend $150 billion in 10 years on building out memory manufacturing, stock falls

Shares of Micron Expertise Inc.
MU,
+0.46%
fell 1.3% in premarket buying and selling Wednesday, after the reminiscence and semiconductor firm mentioned it can make investments $150 billion over the subsequent decade in reminiscence manufacturing and analysis and improvement. The funding, which may embody U.S. fab growth, is aimed toward addressing demand for reminiscence, as reminiscence and storage at the moment symbolize about 30% of the semiconductor market. “Reminiscence is at the vanguard of semiconductor manufacturing and fuels every thing from feature-rich 5G smartphones to the AI-enabled cloud,” mentioned Chief Govt Sanjay Mehrotra. “Micron’s management in each DRAM and NAND applied sciences and the power of our roadmap allow us to speculate greater than $150 billion with confidence to increase our industry-leading reminiscence innovation into the subsequent decade, and ship differentiated merchandise to our prospects.” Micron’s inventory has dropped 10.1% yr up to now whereas the PHLX Semiconductor Index
SOX,
+1.28%
has climbed 21.0% and the S&P 500
SPX,
+0.74%
has superior 20.3%.