Key Highlights

Memory chip maker Micron Technology has unveiled a new round of investment plans aimed at strengthening the domestic US semiconductor supply chain, leading to a rise in its share price.

The strategic initiative includes a $5 billion allocation to support the expansion of Taiwan-based GlobalWafers' silicon wafer R&D and production base in Texas.

The broader chip sector rallied strongly, with significant gains for Applied Materials, KLA, Arm, and Lam Research.

Micron Technology shares surged 7% on Thursday. The company announced a new investment plan to bolster the US semiconductor supply chain and accelerate the pace of its domestic capacity expansion investments planned through 2035.

From this strategic investment, which could total up to $300 billion, $5 billion has been earmarked to support GlobalWafers, headquartered in Taiwan, in expanding its Texas factory's silicon wafer research, development, and production lines. Both companies have also signed a long-term, ten-year supply agreement for prime silicon wafers.

"Securing a stable and reliable supply of critical raw materials is a fundamental foundation supporting Micron's long-term growth and the execution of our technology roadmap," said Ben Tison, Micron's Chief Procurement Officer, in a press release.

The chipmaker concurrently issued another announcement: driven by massive demand for memory chips fueled by the expansion of the AI industry, the company has raised its total US investment target through 2035 to $2.5 trillion, an increase of approximately $500 billion from its previous plan.

The chip sector saw broad gains on Thursday, with Applied Materials, KLA, and Lam Research each rising about 7%, and Arm Holdings surging 11%.