Micron announced groundbreaking for its $100 billion megafab in Onondaga County, New York, scheduled for January 16, 2026. The facility will house up to four advanced semiconductor fabs and is the largest private investment in New York state history. The project is part of Micron’s broader $200 billion U.S. expansion plan that also includes new plants in Idaho and Virginia.
The megafab will focus on high‑bandwidth memory (HBM) and other AI‑enabled memory products that drive Micron’s high‑margin segment. In Q1 FY 2026, the company reported record revenue of $13.64 billion, up 57 % YoY, and a gross margin of 57 %, the highest in its history. The surge was largely powered by a 121 % jump in HBM sales, which now account for a growing share of total revenue and command premium pricing.
Management highlighted that the entire 2026 HBM capacity is already sold under long‑term contracts, giving Micron strong forward visibility. CEO Sanjay Mehrotra said the megafab “positions Micron to meet the escalating demand for AI memory and strengthens our geopolitical resilience by expanding U.S. manufacturing.” The investment also aligns with the CHIPS and Science Act, which provides incentives for domestic semiconductor production.
The project’s construction timeline has been adjusted: the first fabrication plant is now slated to begin construction in mid‑2026, with operations expected in 2030. The delay reflects the company’s focus on ensuring the highest quality and scalability for future AI workloads. Despite the pushback, the megafab remains a cornerstone of Micron’s strategy to shift from commodity memory to AI‑centric products.
Analysts have noted that Micron’s earnings beat expectations in Q1 FY 2026, with EPS of $4.78 per share versus a consensus of $4.50, a beat of $0.28 or 6.2 %. The beat was driven by disciplined cost management and the high‑margin mix of HBM sales, offsetting modest increases in raw material costs. The company’s guidance for Q2 FY 2026 projects revenue of $18.7 billion and gross margins of 67 %, underscoring confidence in sustained AI demand.
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