Micron to invest up to $3B in U.S. semiconductor supply chain

Micron Technology (NASDAQ: MU) announced plans to invest up to $3 billion in the U.S. semiconductor supply-chain ecosystem, including $500 million in financing for GlobalWafers Co., Ltd. to expand its 300mm raw silicon wafer manufacturing facility in Sherman, Texas.

As part of the arrangement, Micron and GlobalWafers will enter into a 10-year supply agreement giving Micron access to raw silicon wafer capacity from the Sherman facility. The companies also said they intend to explore collaboration on next-generation wafer technologies and process innovations.

GlobalWafers describes itself as the only raw silicon wafer supplier participating in the CHIPS for America Program capable of producing advanced 300mm wafers domestically.

"Securing a reliable supply of critical input materials is essential to supporting Micron's long-term growth and technology roadmap," said Ben Tessone, senior vice president and chief procurement officer at Micron Technology.

Doris Hsu, chairperson and CEO of GlobalWafers, said the collaboration would help "strengthen local manufacturing capabilities and supply chain resilience."

The remaining portion of Micron's planned $3 billion commitment is described as directed toward other strategic investments for long-term supply assurance, though specific details were not disclosed.

The proposed transaction remains subject to definitive agreements, customary approvals, and closing conditions, according to the company statement.

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