Micron to spend $150 billion in 10 years on building out memory manufacturing, stock falls

Shares of Micron Technology Inc. MU, +0.46% fell 1.3% successful premarket trading Wednesday, aft the representation and semiconductor institution said it volition put $150 cardinal implicit the adjacent decennary successful representation manufacturing and probe and development. The investment, which could see U.S. fab expansion, is aimed astatine addressing request for memory, arsenic representation and retention presently correspond astir 30% of the semiconductor market. "Memory is astatine the starring borderline of semiconductor manufacturing and fuels everything from feature-rich 5G smartphones to the AI-enabled cloud," said Chief Executive Sanjay Mehrotra. "Micron's enactment successful some DRAM and NAND technologies and the spot of our roadmap alteration america to put much than $150 cardinal with assurance to widen our industry-leading representation innovation into the adjacent decade, and present differentiated products to our customers." Micron's banal has dropped 10.1% twelvemonth to day portion the PHLX Semiconductor Index SOX, +1.28% has climbed 21.0% and the S&P 500 SPX, +0.74% has precocious 20.3%.