Micron’s $3 billion expansion of the plant’s impact on the memory market?

Recently, memory giant Micron announced plans to invest $3 billion over the next 12 years (before 2030) to expand and expand its plant in Virginia, USA.

Micron plans to build an additional 9,290 square meters of additional “cleanroom” for manufacturing memory chips in an existing plant in Manassas, Virginia, which currently employs approximately 1,500 people. After the expansion is expected, 1,100 permanent jobs will be created for engineers and technicians.

According to a previous survey by DRAMeXchange, DRAMeXchange showed that the overall DRAM quotation was driven by the continuation of supply tightness, and the total global DRAM revenue in the second quarter of 2018 reached US$25.591 billion. It grew 11.3% from the previous quarter, with Micron contributing $5.541 billion in revenue and 6.3% in revenue.

 What is the impact of Micron's $3 billion expansion on the memory market?

As the world’s third largest DRAM memory vendor Will Micron’s expansion of the plant affect its own growth or impact on the overall memory market?

In this regard, DRAMeXchange senior research associate Wu Yating believes that at this stage, in addition to responding to the US government’s policy of encouraging local investment, Micron’s expansion plan in Virginia is also focused on some consumers and vehicles. The field of use has a need to extend the life cycle of the product.

The initial expansion plan is mainly DDR3 or earlier production, and the production technology is not the most advanced process, mainly 20nm or older technology, basically for Micron. Supply bit growth or the overall industry will not have a drastic impact.

But it is worthwhile to observe that Dachang Samsung Semiconductor and SK Hynix or small suppliers including South Asia Branch are all optimistic about the follow-up market conditions and have sufficient cash in hand. plan. These new plants will be completed around the end of 2020, and the actual implementation of the new capacity will have a major impact on the industry.

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