Micron Technology, Inc (NASDAQ:MU) reportedly plans to construct a new plant adjacent to the existing Hiroshima factory by 2026.

The chip designer has a DRAM factory in Hiroshima Prefecture, Japan, the DigiTimes reports.

The key high-bandwidth memory (HBM) chip provider plans to spend 800 billion Japanese yen on a manufacturing facility for advanced DRAM in Hiroshima. The stock gained after the report.

The new plant looks to start operation by 2027, as per Reuters.

Earlier in May, the key U.S. Chips Act beneficiary increased its 2024 capital expenditure to $8 billion, up from prior guidance of $7.5 billion.

Micron expects HBM to be a multibillion-dollar business in fiscal 2025 and to enable over 50% of PCs to be AI-enabled by 2027.

Analysts hailed Micron’s HBM moat, expecting upside from strong DRAM pricing, shipments of higher-priced, higher-margin products, and increased AI exposure.

Micron stock gained 81% in the last 12 months. Investors can gain exposure to the stock via Engine No. 1 ETF Trust TCW Artificial Intelligence ETF (NYSE:AIFD) and EA Series Trust Strive U.S. Semiconductor ETF (NYSE:SHOC).

Price Action: MU shares traded higher by 1.40% at $131.27 premarket at the last check Tuesday.

Now Read: Magnificent 7 Becomes ‘The Magnificent One’: Wall Street Guru Hails Single Tech Stock As Market Leader

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