Micron: U.S. Fabs Will Begin Working in 2026

When Micron introduced plans to construct two new fabs within the U.S. in 2022, the corporate vaguely mentioned each would come on-line by the last decade’s finish. Then, in 2023, it started to optimize its spending, which pushed manufacturing at these fabrication amenities. This week, the corporate outlined extra exact timeframes for when its fabs in Idaho and New York will begin operations: this may occur from calendar 2026 to calendar 2029.

“These fab development investments are essential to assist provide development for the latter half of this decade,” a press release by Micron in its Q3 FY2024 monetary outcomes report reads. “This Idaho fab is not going to contribute to significant bit provide till fiscal 2027 and the New York development capex will not be anticipated to contribute to bit provide development till fiscal 2028 or later. The timing of future [wafer fab equipment] spend in these fabs will likely be managed to align provide development with anticipated demand development.“

Micron’s fiscal 12 months 2027 begins in September 2026, so the brand new fab close to Boise, Idaho, is ready to begin operations between September 2026 and September 2027. The corporate’s fiscal 2028 begins in September 2027, so the fab will doubtless start operations in calendar 2028 or later, in all probability relying on the demand for DRAM reminiscence within the coming years. That mentioned, Micron’s U.S. reminiscence fabs will start operations between late 2026 and 2029, which aligns with the corporate’s authentic plans. 

Building of the fab in Idaho is nicely underway. In distinction, development of the New York facility has but to start as the corporate is engaged on regulatory and allowing processes within the state. 

Micron’s capital expenditure (CaPex) plan for FY2024 is roughly $8.0 billion, with a lower in year-over-year spending on wafer fabrication gear (WFE). In This autumn FY2024, the corporate will spend round $3 billion on fab development, new wafer fab instruments, and numerous expansions/upgrades.

Waiting for FY2025, the corporate plans a considerable improve in capex, focusing on a mid-30s share of income to assist numerous technological and facility developments. Specifically, it expects its quarterly CapEx to common above the $3 billion degree seen within the fourth quarter of FY2024, which signifies that it plans to spend about $12 billion in its fiscal 2025, which begins in late September.

Half or extra of the entire CapEx improve in FY2025 (i.e., over $2 billion) will likely be allotted to establishing new fabs in Idaho and New York. In the meantime, the FY2025 CapEx will considerably rise to fund high-bandwidth reminiscence (HBM) meeting and testing and the development of fabrication and back-end amenities. This improve additionally consists of investments in expertise transitions to satisfy rising demand. 

“Fab development in Idaho is underway, and we’re working diligently to finish the regulatory and allowing processes in New York,” mentioned Sanjay Mehrotra, chief government officer of Micron, on the firm’s convention name with buyers and monetary analysts (by way of SeekingAlpha). “This extra modern greenfield capability, together with continued expertise transition investments in our Asia amenities, is required to satisfy long-term demand within the second half of this decade and past. These investments assist our goal to keep up our present bit share over time and to develop our reminiscence bit provide in step with long-term business bit demand.“