Micron Technology raises capital expenditure forecast to $8 bn

Micron Technology has raised its capital expenditure forecast for 2024 to about $8 billion against its earlier forecast of $7.5-$8 billion, CFO Matt Murphy said.
MicronMicron Technology has spent $1.25 billion towards Capex in the second quarter of 2024 which ended February 29, 2024.

The U.S. chipmaker aims at investing heavily to make high bandwidth memory (HBM) semiconductors to meet surging demand from the AI industry.

Sanjay Mehrotra, President and CEO of Micron Technology, said in March: “Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”

Boise, Idaho-based Micron Technology is one of the three leading providers of HBM chips that power artificial intelligence servers. Micron Technology will be supplying its advanced HBM3E to AI chip leader Nvidia to make H200 chips.

The company said in March its HBM chips, which refer to semiconductors used in the development of AI applications, were sold out for 2024. A majority of its 2025 supply has also been allocated, Reuters news report said.

Micron currently offers eight-layer HBM, and has started sampling 12-layer HBM. HBM3E consumes approximately three times the wafer supply as D5 to produce a given number of bits in the same technology node.

“In fiscal 2025, we expect HBM to be a multibillion-dollar business for us,” Micron Technology Chief Operating Officer Manish Bhatia said at the J.P. Morgan Technology, Media and Communications Conference.

Micron Technology today said it will be partnering with GlobalFoundries, the U.S. National Science Foundation (NSF) and additional leaders in industry, government and education to increase access to opportunities and to meet the growing demand for semiconductor talent in the U.S.

Micron was recently granted $6.1 billion from the U.S. CHIPS and Science Act to support the company’s planned investment of approximately $50 billion in gross Capex for U.S. domestic memory manufacturing through 2030.