[News] Micron Targets 2026-2029 for its U.S. Fabs to Commence Operation

---

---

After Micron’s announcement of constructing two new fabs in the U.S. in 2022, the memory giant has now provided more details regarding their production timeline. According to the information the company disclosed in its Q3 FY24 financial report and its conference call, the fabs in Idaho and New York target to start operation between 2026 and 2029, a report from AnandTech noted.

“Fab construction in Idaho is progressing well, and we are diligently working to complete the regulatory and permitting processes in New York,” said Sanjay Mehrotra, CEO of Micron, during the company’s conference call with investors and financial analysts. However, the company admits that the Idaho fab will not contribute to meaningful supply until FY27, while and the New York fab is not expected to contribute to bit supply growth until FY28 or later.

AnandTech further noted that as Micron’s fiscal year 2027 begins in September 2026, the new fab near Boise, Idaho, will likely commence operations between September 2026 and September 2027, while the New York fab is expected to begin operations afterwards. Namely, Micron’s U.S. memory fabs are projected to start operations between late 2026 and 2029.

According to an earlier report by Bloomberg, Micron is expected to receive over USD 6 billion in funding through the “Chips Act” from the Department of Commerce to assist with the costs of local factory projects, as part of efforts to bring semiconductor production back to U.S. soil.

Though its U.S. fabs may not start operation soon, Micron does confirm the strong momentum from HBM, saying that its HBM production capacity has been fully booked through 2025, according to another report by TheElec. The company would be the second memory giant to make such a statement, after SK hynix.

Micron claims that it expect to generate “several hundred million dollars” of revenue from HBM in FY24, and “multiple $Bs” in revenue from HBM in FY25. The company has already sampled its 12-high HBM3E product and expect to ramp it into high volume production in 2025, as it is also confident to maintain the technology leadership with HBM4 and HBM4E.

To support the strong market demand as well as preparing for the mass production for its U.S. fabs, Micron expects to increase its capital spending materially next year, with capex around mid-30s % range of revenue for FY25, which will support HBM assembly and test equipment, fab and back-end facility construction as well as technology transition investment to support demand growth, the company said.

Micron states that its average quarterly capex in FY25 to be meaningfully above the Q4 2024 level of USD 3 billion, which means its capex would be around USD 12 billion, reporting a strong 50% YoY growth comparing to the USD 8 billion in FY24.

Read more

• [News] Memory Giant Micron’s 3Q24 Earnings Report Released, Outlook Slightly Better Than Expected
• [News] Micron Reportedly to Receive Over USD 6 Billion in US Chip Funding

(Photo credit: Micron)