What's Going On With Micron Technology Stock Thursday

  • Micron Technology, Inc MU shares are trading higher on Thursday following reports of the Japanese government's incentives towards ramping up DRAM chip production in the country.
  • The Japanese government will likely dole out close to $1.51 billion (200 billion yen) in financial incentives to help Micron make next-generation memory chips in the country, Bloomberg cites familiar sources.
  • Micron prepares to launch extreme ultraviolet (EUV) technology in Japan, tapping the patterning technology to manufacture its next generation of DRAM, the 1-gamma (1γ) node.
  • The company will be the first semiconductor business to introduce EUV technology to Japan for production, with its Hiroshima fab playing a critical role in developing the 1-gamma node. 
  • It expects to invest up to $3.78 billion (500 billion yen) in 1-gamma process technology over the next few years, with close support from the Japanese government, to enable technology innovation like the rapidly emerging generative artificial intelligence (AI) applications.
  • The launch of 1-gamma follows the development of Micron's 1-beta (1β), the industry's most advanced DRAM node today, which Micron mass produces in its Hiroshima fab
  • The semiconductor giant continues progressing on its EUV integration plans and expects to ramp up EUV into production on the 1-gamma node in Taiwan and Japan from 2025 onwards.
  • Micron's move marks Japan's progress towards consolidating its semiconductor supply chain, which fell apart during the pandemic leading to a severe chip crisis for electronic gadgets and automobiles.
  • It has invested over $13 billion in Japan since 2013 to produce one-beta DRAM chips.
  • Suppliers that will benefit from Micron's investments include Tokyo Electron Ltd TOELY TOELF and ASML Holding N.V. ASML of the Netherlands.
  • Price Action: MU shares traded higher by 1.36% at $65.80 in the premarket on the last check Thursday.
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