As Demand for AI Memory Soars, Micron Earmarks $200bn to Boost Production

Micron Technology, the largest manufacturer of memory chips in the U.S., has caused shockwaves in the industry with its plans to inject $200 billion to rapidly expand its manufacturing capacity in order to address the booming demand for memory chips that are vital in many electronic devices like laptops and smartphones, as well as AI data centers and electric vehicles.

Micron executives say their massive investment is geared at averting a supply crunch of a magnitude that hasn’t been seen in more than 40 years.

The company has its headquarters in Boise, Idaho. Its campus sits on 450 acres, and the company is planning to, at the very least, double the size of this campus. Micron is currently building two massive fab (fabrication) plants. The first fab is expected to start producing silicon wafers in the first half of 2027. The second fab, also under construction, is due to be operational in 2028.

Each of these fabs will be among the largest-ever built clean rooms in the U.S. To put the scale of the work in context, preparation of the ground required the use of more than seven million pounds of dynamite and about 70,000 tons of steel are needed to build each fab.

Such massive projects have become necessary as the AI boom fueled by companies like Oracle, OpenAI and xAI that have unveiled ambitious plans of setting up ever bigger data centers. Those facilities will need huge amounts of memory, and current supplies are woefully inadequate to address that demand. This reality is reflected in the rapid pace at which the margins of companies that produce memory have risen.

Micron’s gross margins have climbed from 18.5% in 2024 to 56% as per earnings results released for the last quarter of 2025. Forecasts indicate these margins could go up to 68% in the near future as companies race to lock in existing supplies of memory.

This rise in demand comes on the heels of a depressed market after the pandemic that saw companies slash production in order to shore up prices. This was after there was a huge demand for mobile devices to keep people engaged during the pandemic and once the pandemic ended, demand for memory plummeted and squeezed company earnings.

As many companies like Nvidia Corp. (NASDAQ: NVDA) design more advanced AI processors, more memory capacity that can run faster is needed and Micron is looking to leverage this demand to grab a larger share of the market.

About TrillionDollarClub

TrillionDollarClub (“TDC”) is a specialized communications platform with a focus on the biggest and brightest companies covered by IBN. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, TDC is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, TDC brings its clients unparalleled recognition and brand awareness.

TDC is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from TrillionDollarClub, text “Trillion” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.TrillionDollarClub.net

Please see full terms of use and disclaimers on the TrillionDollarClub website applicable to all content provided by TDC, wherever published or re-published: https://www.TrillionDollarClub.net/Disclaimer

TrillionDollarClub
Austin, TX
www.TrillionDollarClub.net
512.354.7000 Office
Editor@TrillionDollarClub.net

TrillionDollarClub is powered by IBN