Micron Technology has unveiled a $25 billion capital expenditure plan to expand its semiconductor fabrication capacity, signaling strong confidence in the ongoing memory chip supercycle. The move targets a 40% increase in DRAM and NAND output by 2028, positioning the company to capture rising demand from AI, data centers, and consumer electronics.
- Micron committed $25 billion in capex over five years to expand DRAM and NAND capacity
- Target: 40% increase in production by 2028, with new fabs in New York and upgrades in Taiwan and Japan
- Global DRAM demand grew 32% YoY in Q4 2025; NAND shipments up 28%
- Micron’s revenue forecast for 2028 projected to rise 24%, EPS to $12.60
- Stock MU surged 18% in pre-market trading post-announcement
- Supply constraints persist, benefiting AI chipmakers NVDA, AMD, and INTC, and foundry TSM
Micron Technology has launched a sweeping expansion strategy, committing $25 billion in capital expenditures over the next five years to bolster its global manufacturing footprint. The initiative includes the construction of a new advanced DRAM fabrication facility in New York and upgrades to existing plants in Taiwan and Japan. The company aims to increase its total production capacity by 40% by 2028, with a focus on high-bandwidth memory (HBM) and next-generation NAND flash storage. This aggressive investment comes amid a pronounced resurgence in the semiconductor memory supercycle, driven by surging demand for AI infrastructure and cloud-based computing. Data from industry trackers indicate global DRAM demand grew by 32% year-over-year in Q4 2025, while NAND shipments rose 28%, fueled by data center upgrades and high-performance computing applications. Micron’s move underscores its strategic intent to secure long-term market share, especially as competitors like SK Hynix and Samsung ramp their own capacity expansions. The expansion is expected to drive a 24% increase in Micron’s annual revenue forecast for fiscal 2028, with EPS projections rising to $12.60 from $8.40 in 2025. The company’s stock, MU, has gained 18% in pre-market trading following the announcement, outpacing the broader semiconductor index. Investors are pricing in heightened earnings potential, particularly as supply constraints remain tight across key memory segments. The ripple effects extend to the broader tech ecosystem. Nvidia (NVDA), AMD, and Intel (INTC) are expected to benefit from enhanced memory availability for their AI accelerators and processors. Taiwan Semiconductor Manufacturing (TSM), a key foundry partner, may also see increased demand for its 3nm and 2nm processes used in advanced memory integration. The expansion underscores a structural shift in the semiconductor supply chain, with U.S.-based manufacturing playing a more central role in meeting strategic technology needs.