Micron Technology shares closed in the red in the US Wednesday, as the US chipmaker announced plans to invest $3 billion on expanding it’s Virginia-based plant. The investment would be made over a 12-year period and create 1,100 new jobs by 2030, the tech firm said.
Micron Technology shares ended the US Wednesday session 0.97% lower at $51.83. The stock has been mixed in recent weeks.
Micron Technology investment plans
The planned $3 billion investment is primarily to help the firm increase its capacity to supply the quickly growing demand for more tech in the auto industry.
“Micron's Manassas site manufactures our long-lifecycle products that are built using our mature process technologies, and primarily sold into the automotive, networking and industrial markets,” said Micron President and CEO Sanjay Mehrotra.
“These products support a diverse set of applications such as industrial automation, drones, the IoT (Internet of Things) and in-vehicle experience applications for automotive. This business delivers strong profitability and stable, growing free cash flow,” Mehrotra said.
The Governor of Virginia, Ralph Northam, was upbeat on the news that would support the local economy.
“Micron's expansion in the City of Manassas represents one of the largest manufacturing investments in the history of Virginia and will position the Commonwealth as a leader in unmanned systems and Internet of Things,” Governor Northam said.
Increased appetite for tech
The initial physical expansion of the existing site is expected to completed in 2019. That should allow production to increase by 2020.
As well as creating more capacity for production, Micron is also planning to create a global research centre in the centre of Manassas. It will support the “development of memory and storage solutions focused mainly on the automotive, industrial and networking markets,” Micron technologies said.
Some 100 engineer staff are set to work in the development and test labs in the new facility.