Micron to invest up to $3 billion in US chip supply chain

Micron Technology said on Thursday it plans to invest up to $3 billion to strengthen the U.S. semiconductor supply-chain, as the memory chip firm moves to secure critical manufacturing materials amid surging AI-driven demand.

Shares of the company extended gains, and were up more than 6% in premarket trading.

As part of the plan, Micron will provide $500 million in strategic financing to advance GlobalWafers' 300 mm raw silicon wafer manufacturing facility in Sherman, Texas.

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The two companies will also enter into a 10-year supply agreement that will provide Micron access to significant raw silicon wafer capacity to support its long-term manufacturing plans, according to the statement.