Micron plans to have over $150 billion in capital, R&D spending 10 years ahead

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To meet rapidly growing demand, it plans to increase its investment to more than $150 billion over the next decade and is calling on Congress to pass a bill to support domestic plant expansion.

Micron CEO Sanjay Melotra said some of the planned spending will go to the expansion of existing chip production facilities and the possibility of building new ones. “We will work with governments around the world, including in the United States, to address our need to expand supply in line with demand forecast for 2030,” he told the Wall Street Journal.

Due to the global shortage of semiconductors, chip makers around the world are planning to expand their factories Ltd.

After detailing a US expansion plan earlier this year, it pledged up to about $95 billion in September to increase chip manufacturing capacity in Europe. Taiwan Semiconductor Manufacturing Ltd.

The world’s leading contract chip maker this month announced it would build a chip manufacturing plant in Japan. Samsung Electronics Ltd.

and Global Foundries Inc. also announced a fixed investment plan this year.

The number of semiconductors in modern automobiles can exceed 1000, from the ignition to the braking system. As global chip shortages continue to grow, automakers from General Motors to Tesla are forced to adjust production and rethink their entire supply chains. Illustration / Video: Sharon Shea

Chip shortages attempt to secure supply by telling the government how semiconductors are important to the economy and often by providing subsidies to attract investment. I requested you.

Mehrotra said he supported US government proposals from the Biden administration and legislators to boost domestic chip production, including a legislative bill for plant investment and long-term tax incentives. where did it go. “The economics needs to work,” he said, adding that factories in the United States could be 35% to 45% more expensive than in low-cost countries.

In June, the Senate passed a law to increase government spending on technology research and development. This includes $52 billion to encourage semiconductor production. The House of Representatives has yet to take any action while the broader legislation is under negotiation. The semiconductor industry is also lobbying for investment tax credits.

Mehrotra said Idaho-based Micron’s Boise is seeking clarification soon about the US fiscal stimulus. “Investment decisions need to be made over the next few years, and implementation of that plan will take some time,” he said.

The company plans to invest up to $12 billion in capital above the historical average in the current fiscal, with a target of about $3 billion in R&D spending.

Mehrotra also said that he is seeing signs that the odds of the worst chip supply are starting to ease. “The supply crisis the industry is facing has already improved and will continue to improve,” he said, “but some of the shortfall could continue until 2023.”

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