Micron Technology Launches Unprecedented $200 Billion Capacity Drive

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Micron Technology is embarking on the most significant manufacturing expansion in its corporate history. The memory chip giant is committing $200 billion to build new production facilities in the United States, while simultaneously preparing to bring India?s first commercial semiconductor plant online. This dual-continent strategy sends a clear signal: the company aims to resolve the critical supply shortage of memory chips required for artificial intelligence.

This aggressive capital expenditure program is a direct response to market conditions. Company executives have described the current situation as the most severe memory shortage in over four decades. High-bandwidth memory (HBM) chips, essential for powering advanced AI systems, are in particularly scarce supply. Micron?s unprecedented investment is a calculated effort to address this global deficit.

Wall Street has responded positively to the expansion blueprint. Needham & Company reinforced its "Buy" rating on Tuesday, raising its price target for Micron shares to $450 from $380. Analysts cited the firm?s strategic positioning and a persistently favorable supply-demand outlook as key drivers.

Further bolstering confidence, Micron confirmed it will ship its next-generation HBM4 products ahead of the original schedule, dispelling earlier rumors of potential delays. With AI-driven demand expected to keep the memory market tight through at least 2027, the company appears well-positioned for the coming years.

Key Expansion Details:

• Total U.S. Investment: $200 billion focused on DRAM and HBM manufacturing capacity.
• Idaho Facility Timeline: Production commencement is slated for mid-2027 at the first new plant, with full operational capacity targeted for late 2028.
• India Plant Launch: The Sanand facility will begin operations in late February 2026.
• Revised Price Target: Needham & Company increased its target to $450 per share.

Doubling Down on Domestic Manufacturing

The centerpiece of this initiative is in Boise, Idaho, where Micron will double the size of its existing 182-hectare campus. The plan involves constructing two major fabrication plants, or "fabs," specifically engineered for producing DRAM chips optimized for high-bandwidth memory?a component indispensable for AI data centers.

The timeline is ambitious but deemed necessary. Industry demand from data center operators and AI developers currently outpaces the semiconductor industry?s ability to supply, creating a pressing need for new capacity.

A Semiconductor Milestone for India

Concurrently, Micron is poised to achieve a landmark in South Asia. Production at the new facility in Sanand, Gujarat, is scheduled to start in late February 2026.

S. Krishnan, Secretary of India?s Ministry of Electronics and Information Technology, confirmed on Monday that the Sanand plant will represent the nation's first commercial semiconductor production. The facility will handle assembly, testing, and packaging (ATMP), which are crucial final steps in the chip manufacturing process. This development marks a significant breakthrough for India?s semiconductor industry ambitions.