About 90% of the RAM produced worldwide is now supplied by three companies, two of which (Samsung and SK Hynix) are from South Korea and the third is from the USA – Micron Technology. At the same time, the US share of the global memory market currently barely reaches 2%, but in 20 years Micron management hopes to increase this figure to 15%.
About this in the interview CNBC said Sanjay Mehrotra, CEO of Micron Technology. According to him, the share of memory produced in the USA in the company’s production program will increase from 10 to 60% by then. For this purpose, new companies are being created in the states of Idaho and New York. The new company’s memory production will begin in the first state in 2026, and construction will begin late next year on a factory in New York state to begin producing memory chips by 2027. According to Micron officials, such companies need to be large to ensure cost savings at production scale. In New York state, the company expects to build four companies within twenty years, spending up to $100 billion. At the first stage, in terms of subsidies, it can already count on support from state authorities in the amount of $ 5.5 billion, and an application has also been submitted for subsidies from the federal budget within the framework of the so-called “chip law”. It plans to spend $15 billion to build the Idaho plant. Micron currently produces its advanced memory chips primarily in Japan and Taiwan, but expects the U.S. to increase its role in this area in the coming years.
For a long time, Micron did not build new companies and expanded in the market by acquiring smaller manufacturers and their production sites. In particular, Micron has completed eleven related transactions since 1998. Now is the time to start building new businesses, and the current downturn in the memory market does not bother Micron Technology’s management. In the smartphone segment, the need to increase storage capacity will soon become apparent due to the increasing computing load and the emergence of “heavier” content transmitted over the network. In the artificial intelligence segment, demand for high-speed storage such as HBM will grow. Autopilot and the development of automotive electronics will ensure the demand for storage in the transportation industry.
Micron’s New York facility, which begins construction next year, will use water the equivalent of 25 Olympic-sized swimming pools every day, as well as enough electricity to power 25,000 homes. When Micron’s management talks about the advantages of building a plant in the United States, it points to the low cost of energy resources. At the same time, labor is more expensive here and the costs of building businesses are higher, but in terms of these indicators other regions of the world are catching up with the United States. Micron is trying to overcome the shortage of qualified personnel through collaborations with American universities. After all, the company will have to employ around 50,000 US citizens in New York State alone over the next few decades, so targeted educational programs must be started now. Micron even sponsors a themed summer camp for teenagers to stimulate young people’s interest in the semiconductor industry.