Micron shares rise 7% after announcing billions more in U.S. chipmaking investments

Micron shares rose 7% on Thursday as the company announced a new round of investments aimed at boosting the U.S. semiconductor supply chain, and plans to accelerate its spending in the country through 2035.

The new strategic investment of up to $3 billion includes $500 million for Taiwanese-headquartered GlobalWafers to expand its wafer development and manufacturing in its Texas facilities, and also comes with a 10-year supply agreement for raw silicon wafer capacity.

"Securing a reliable supply of critical input materials is essential to supporting Micron's long-term growth and technology roadmap," said Ben Tessone, Micron's chief procurement officer, in a press release.

In a separate announcement, the chipmaker said it will also raise its planned U.S. investment to $250 billion through 2035, roughly a $50 billion increase, as memory demand from the artificial intelligence buildout skyrockets.

Other names in the chip space rallied on Thursday, with Applied Materials, KLA Corp and Lam Research up 7%, ARM Holdings up 11%.