Building a $100 billion factory in the United States + acquiring LSI's wafer fabrication facility for $1.8 billion! Micron Technology, Inc. (MU.US) accelerates production expansion in the storage "golden track".

Storage chip giant Micron Technology, Inc. (MU.US) announced last Saturday that it plans to acquire a wafer fab facility in Taiwan from Taiwan-based Integrated Electronic Systems Lab (IESLAB) for $1.8 billion to expand its storage chip capacity. The company stated that it will take over IESLAB's P5 fab facility in Taoyuan, Taiwan, and plans to gradually increase DRAM production after the transaction is completed in the second quarter. Micron Technology, Inc. expects that this deal will bring significant DRAM wafer output in the second half of 2027. Micron Technology, Inc. also mentioned that the two companies will collaborate on Micron Technology, Inc.'s backend assembly and packaging of wafers, as well as supporting IESLAB's traditional DRAM product portfolio. This deal marks the latest move in Micron Technology, Inc.'s ongoing global expansion. Data shows that Micron Technology, Inc. rose by 7.76% last Friday, as the company held a groundbreaking ceremony for a memory manufacturing complex in Onondaga County, New York. The total investment in the project amounts to $100 billion, planning to build up to four wafer fabs, which will become the largest semiconductor manufacturing base in the United States once completed, as well as one of the most advanced storage chip production facilities globally. Micron Technology, Inc. stated that the facility is expected to start production in 2030, with capacity gradually ramping up over the next decade to meet the growing demand for advanced storage chips in areas such as artificial intelligence, data centers, and high-performance computing. Micron Technology, Inc.'s stock has surged over 240% in 2025, and has risen by nearly 27% this year. The strong performance of Micron Technology, Inc.'s stock is attributed to the storage industry entering an upcycle driven by the infrastructure boom in artificial intelligence (AI). In 2025, with the global AI infrastructure construction entering a period of rapid development, the storage industry entered a "super cycle". The core logic behind this is that AI servers require much higher storage capacity and bandwidth than ordinary servers. Additionally, the industry's production capacity is shifting towards high-end storage products, such as HBM, squeezing the capacity of traditional storage products, leading to a price hike across the entire storage industry. It is worth noting that this "super cycle" in the storage industry is expected to continue until at least 2026, as evidenced by the extremely optimistic performance outlook given by Micron Technology, Inc. in its financial report released in December last year. Micron Technology, Inc. projected revenue for the second quarter of the 2026 fiscal year to be between $18.3-19.1 billion, surpassing the market expectations of $14.4 billion, and adjusted earnings per share forecasted to be between $8.22-8.62, far exceeding the market expectations of $4.71. This guidance indicates that the demand for storage chips is strong under the global AI infrastructure construction boom. The company also raised its 2026 fiscal year capital expenditure forecast from $18 billion to $20 billion, highlighting the accelerating pace of capacity expansion driven by the continuous surge in demand for storage chips. Analysts at Citigroup are even more bullish about the situation. They believe that prices of storage chips will experience an uncontrollable surge in 2026 driven by the popularity of AI smart bodies and the surge in demand for AI CPU memory. Citigroup analysts have raised their average selling price (ASP) growth expectations for DRAM in 2026 from 53% to 88%, and for NAND from 44% to 74%. Analysts at Nomura predict that the "super cycle" in the storage industry that began in the second half of 2025 will last until at least 2027, and significant new supply is not expected to appear until early 2028 at the earliest. Nomura analysts suggest that investors should continue to overweight storage leaders in 2026, and focus on the "price-profit-valuation" three-strike approach for storage investments in 2026, rather than just looking at storage as a single theme like HBM. The high prosperity of the storage industry has also received a "solid endorsement" from insiders at Micron Technology, Inc. Earlier, the company disclosed that its director, Teyin Liu, purchased 23,200 shares of Micron Technology, Inc. common stock, with a transaction size of $7.8 million. The purchase price range was between $336.63 and $337.50 per share. After the transaction, Teyin Liu directly owns 25,910 shares of Micron Technology, Inc. stock.