Why is Micron investing in GlobalWafers' Texas plant?

The investment ensures stable supplies of 300mm silicon wafers, essential for DRAM production. It aligns with Micron's strategy to reduce reliance on overseas suppliers and localize manufacturing.

What percentage of DRAM does Micron plan to produce in the U.S. by 2035?

The company aims to produce 40% of its DRAM volume domestically by the mid-2030s, requiring significant infrastructure and supply chain investments.

What risks are associated with long-term wafer supply contracts?

Long-term contracts may pose financial burdens if memory demand declines, as seen in 2019. However, Micron is willing to take these risks due to current capacity shortages and rising semiconductor prices.

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Micron Invests $500M in GlobalWafers Texas Plant, Boosts U.S. Spending to $250B

July 13, 2026

Photo: Tom's Hardware

Quick answer

Micron allocates $500M to GlobalWafers' Texas plant and increases U.S. investments to $250B by 2035, aiming to localize 40% of DRAM production.

Micron has committed $500 million to expand GlobalWafers' manufacturing facility in Sherman, Texas. The funds will support the production of 300mm silicon wafers, a critical component for DRAM memory. The decade-long supply agreement will strengthen Micron's semiconductor supply chain in the U.S.

Additionally, Micron has revised its U.S. infrastructure investment plans, increasing the total capital expenditure to $250 billion by 2035. The company aims to localize 40% of its DRAM production in the U.S., aligning with its strategy to reduce dependence on Asian suppliers. Currently, only 2% of global DRAM production occurs in the U.S., and Micron is actively working to change this.

The 300mm wafer market is dominated by five major players: Japanese firms Shin-Etsu and SUMCO, Taiwan's GlobalWafers, Germany's Siltronic, and South Korea's SK Siltron. The two Japanese companies control over half the market, highlighting Asia's concentration of production capacity. Micron is diversifying its supply chain by securing long-term contracts with manufacturers like GlobalWafers, which has already received a $406 million grant under the CHIPS Act.

However, localizing production faces challenges, including limited advanced chip packaging capacities. Most cutting-edge packaging technologies, such as HBM (High Bandwidth Memory), are concentrated in Asia. While Micron plans to launch HBM production in Singapore by 2026, similar U.S. facilities won't emerge until 2028–2029. This timeline poses risks to meeting localization goals amid surging AI-driven memory demand.

Despite ambitious plans, experts warn that current investments may not fully address capacity shortages. DRAM prices surged over 90% in Q1 2026, reflecting a severe supply-demand imbalance. Micron has already secured strategic agreements with automakers like General Motors and Ford to guarantee memory supplies, but achieving localization targets will require substantial time and resources.

Common questions

Why is Micron investing in GlobalWafers' Texas plant?: The investment ensures stable supplies of 300mm silicon wafers, essential for DRAM production. It aligns with Micron's strategy to reduce reliance on overseas suppliers and localize manufacturing.
What percentage of DRAM does Micron plan to produce in the U.S. by 2035?: The company aims to produce 40% of its DRAM volume domestically by the mid-2030s, requiring significant infrastructure and supply chain investments.
What risks are associated with long-term wafer supply contracts?: Long-term contracts may pose financial burdens if memory demand declines, as seen in 2019. However, Micron is willing to take these risks due to current capacity shortages and rising semiconductor prices.

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