Chip giant Micron has announced a $ 150 billion global investment plan designed to support manufacturing and research over the next decade.
The memory maker said it will include expanding its manufacturing facilities to help meet demand.
In addition to chip shortages due to the disruption of COVID-19, the $ 21 billion company has said it wants to take advantage of the fact that memory and storage is now around 30%. of the global semiconductor industry.
Investments in AI and 5G were accelerating demand for memory chips, Micron Chairman and CEO Sanjay Mehrotra said in a pre-designed statement.
While Micron did not specify where he would invest, reports from the Nikkan Kogyo newspaper suggest he will build a new factory at its Japanese production site in Hiroshima at a cost of around $ 7 billion.
Supply chains affected by the pandemic and growing demand have recently sparked a wave of investment from semiconductor companies.
Earlier this month, contract chipmaker TSMC said it would increase capacity to meet growing demand for chips in equipment related to 5G, high-performance computing and automotive products.
“COVID-19 has fundamentally accelerated the digital transformation, making semiconductors more ubiquitous and essential in people’s lives,” CEO CC Wei said on a results conference call. “TSMC is better positioned to capitalize on its favorable industry megatrend. “
TSMC is expected to build a new factory in Japan to manufacture chips using older 22 and 28 nanometer nodes. The plant will be operational in 2024, but TSMC has not mentioned what type of chips the plant will produce.
Meanwhile, Intel announced an $ 80 billion investment in Europe, but said expansion plans would not include the UK after the country left the EU trade bloc.
In the near term, the world’s fourth-largest memory maker, Taiwan-based Nanya Technology Corporation, has predicted a price “correction” in late 2021, saying demand is weak as component shortages and related electronics factory disruptions. to COVID continue. Meanwhile, DRAM and NAND flash memory prices are expected to drop sharply in the second half of 2022 according to analyst firm Gartner. The hope here will be that by 2024 those prices will rise again – especially for anyone investing in high-cost manufacturing, with all of its associated compliance, energy and production tariffs. ®