Micron Technology, a U.S. memory semiconductor company, announced a significant expansion of its investment plans just one day before SK Hynix's American Depositary Receipt (ADR) listing. As demand for artificial intelligence (AI) memory surges, competition between the two companies is intensifying in both the U.S. stock market and production facility investments.
According to reports from Reuters and others, Micron revealed on July 9 that it plans to invest over $250 billion (approximately 375 trillion won) in semiconductor production facilities and technology in the U.S. by 2035. This marks an increase of $50 billion from its previous investment plan of $200 billion.
The investment will include costs for a large semiconductor manufacturing plant being built in Clay, New York, as well as expansions of facilities in Idaho and Virginia. Micron also stated that it has begun foundational work at the New York plant more than a quarter ahead of schedule.
Micron aims to increase its share of DRAM production in the U.S. to 40%. DRAM is a type of memory semiconductor used for temporarily storing data in computers and servers. The company expects that this investment will create over 90,000 jobs across the country.
Additionally, separate investments will be made to strengthen the semiconductor supply chain in the U.S., with Micron planning to inject up to $3 billion (approximately 4.5 trillion won) into the supply chain ecosystem.
This announcement aligns with the semiconductor production expansion initiatives of the Donald Trump administration, which has emphasized increasing domestic semiconductor production.
The market reacted swiftly, with Micron's stock surging nearly 7% during trading following the announcement. Expectations that increased investment in AI servers will drive demand for memory semiconductors have also boosted semiconductor equipment stocks.
Notably, Micron's announcement came just before SK Hynix's Nasdaq ADR listing. SK Hynix has set the offering price for its ADR at $149 per share, aiming to raise approximately $26.5 billion (around 40 trillion won). Reports indicate that demand for the offering has exceeded seven times the available shares.
* This article has been translated by AI.
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