Micron Technology is launching a massive capital expenditure program, signaling a bold bet on sustained growth in artificial intelligence. The memory chip manufacturer is channeling billions into new manufacturing sites, driven by what it views as a long-term structural surge in demand for advanced memory solutions, particularly for AI data centers.
Record Quarterly Performance Sets the Stage
The company’s aggressive investment plans are built upon a foundation of robust financial results. For its first fiscal quarter of 2026, reported in December 2025, Micron posted exceptional figures:
- Revenue: $13.64 billion, representing a 57% year-over-year increase.
- Adjusted Net Income: $5.48 billion.
- Adjusted Earnings Per Share: $4.78.
- Operating Cash Flow: $8.41 billion.
A standout performer was the cloud business unit, which achieved record revenue of $5.28 billion—nearly double the figure from the prior year. Looking ahead, management has provided guidance for the current second quarter, projecting revenue to reach approximately $18.7 billion with an adjusted gross margin of 68%. Adjusted earnings per share are forecast to climb to $8.42.
Strategic Investments Target Future Capacity
To meet anticipated demand, Micron has outlined a capital investment plan totaling roughly $20 billion for fiscal year 2026, with the heaviest spending concentrated in the latter half. Company leadership cites tight supply and demand dynamics, expected to persist beyond calendar year 2026, as the rationale for this significant outlay. The entire production output of its High-Bandwidth Memory (HBM) for 2026, including its advanced HBM4 product, is already fully committed under supply agreements.
Singapore: A Flagship $24 Billion Facility
A cornerstone of this expansion is a new state-of-the-art fabrication plant in Singapore. The groundbreaking ceremony took place on January 26, 2026, for a project that will see Micron invest around $24 billion over the next decade. This facility, designed to be the country’s first two-story wafer fab, will provide 65,000 square meters of cleanroom space.
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Production is scheduled to commence in the second half of 2028. The new fab is expected to create approximately 1,600 jobs, which will be in addition to the 1,400 positions tied to a previously announced HBM packaging facility at the same location.
Acquisition in Taiwan Bolsters DRAM Output
Further expanding its manufacturing footprint, Micron signed a letter of intent in mid-January to acquire Powerchip Semiconductor’s P5 fabrication plant in Tongluo, Taiwan. The all-cash transaction is valued at $1.8 billion. The acquired site includes 28,000 square meters of existing cleanroom infrastructure.
The deal is anticipated to close in the second calendar quarter of 2026. Following the acquisition, relevant DRAM production at the Tongluo facility is projected to begin in the latter half of 2027.
Positioning for a Long-Term Growth Cycle
The timing of these capacity expansions is strategic. Micron has calibrated its investments so that the new Singapore fab and the acquired Taiwan facility will begin delivering significant volume output in 2027 and 2028. This aligns with the company’s forecast for continuously rising demand in the coming years. Micron positions itself as a technology leader in the HBM segment, which is critical for AI server clusters and high-performance computing applications, underpinning its confidence in a prolonged industry upcycle.
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