Micron Technology's shares surged by 7% following the company's commitment to invest up to $3 billion to strengthen the U.S. semiconductor supply chain. This investment includes $500 million allocated to GlobalWafers for expanding wafer development and manufacturing in Texas, coupled with a 10-year supply agreement for raw silicon wafers.
Ben Tessone, Micron's chief procurement officer, emphasized the importance of securing a reliable supply of critical materials for the company's long-term growth and technology roadmap.
Additionally, Micron announced an increase in its planned U.S. investments to $250 billion through 2035, a $50 billion rise, driven by the soaring demand for memory chips linked to artificial intelligence advancements. The positive news also buoyed other semiconductor companies, with Applied Materials, KLA Corp, and Lam Research each rising by 7%, and ARM Holdings increasing by 11%