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Micron to spend $10B on new Boise lab for memory and AI compute
Micron said the Boise, Idaho research lab will support memory technology and compute systems, with the company also expecting tight supply conditions to persist beyond 2027.
Micron Technology announced it will invest $10 billion over the next decade in a new research lab in Boise, Idaho, focused on advancing memory technology and compute systems. The company framed the move as long range bets on continuing demand for the chips used in AI, following its recent strength in revenue.
HousingWire reports Micron recently posted its fifth consecutive quarterly revenue record, driven by soaring chip demand feeding AI. In its fiscal third quarter ended May 28, Micron generated $41.5 billion in revenue, up from $9.3 billion a year earlier, with data center sales contributing $25.3 billion, more than 60% of total revenue.
Guidance for the fiscal fourth quarter calls for roughly $50 billion in revenue and gross margin near 86%, which Micron described as records if sustained. The article also cites JPMorgan estimates that DRAM prices will rise about 400% from the start of 2024 to the end of 2026, while management said it does not see a clear end point to the shortage and expects tight supply beyond calendar 2027.
The Boise lab, planned to connect Micron research across the US, Europe, Japan, India, Singapore, and Taiwan into a hub, is designed to host hundreds of researchers once construction begins in 2027. The company also notes that it has committed more than $250 billion to US manufacturing and research through 2035, as it seeks to extend current momentum in a market known for sharp cycle swings.