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Micron Breaks Ground on New York Megafab, Moves to Buy Taiwan Plant as AI Memory Demand Sends Shares to Record

Investors are betting on tight memory supply driven by AI-heavy workloads.

Overview

  • CEO Sanjay Mehrotra said AI-driven demand for DRAM and HBM is accelerating, with industry tightness expected to persist into 2027.
  • Micron began construction on a 600,000-square-foot fab in Clay, New York, part of a multiyear U.S. expansion that includes a stated long-range investment ambition and near-term projects in Idaho.
  • The company signed an exclusive Letter of Intent to acquire Powerchip’s P5 fab in Taiwan for $1.8 billion in cash, with closing targeted by the second quarter of 2026 pending final agreements and approvals.
  • Micron expects the Taiwan site to deliver meaningful DRAM wafer output in the second half of 2027, while it ramps production at existing facilities to meet near-term demand.
  • Shares jumped roughly 6%–8% on Friday to an all-time high around $353 as analysts projected steep Q1 price gains for memory, with several firms lifting targets including KeyBanc to $450, RBC to $425, and Citi to $385.