Business Corpus: Micron CEO Touts Automotive Chip Business At New Plant SiteMicron Technology announced plans to invest $3 billion over the next decade to increase memory chip production at its plant in Manassas, Va. The increased chip production will serve customers primarily in the automotive, networking and industrial markets. The post Micron CEO Touts Automotive Chip Business At New Plant Site appeared first on Investor's Business Daily.

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MANASSAS, Va. — Micron Technology (MU) on Wednesday announced plans to invest $3 billion over the next decade to increase memory chip production at its plant in Northern Virginia.

The increased chip production will serve customers primarily in the automotive, networking and industrial markets. That's according to Chief Executive Sanjay Mehrotra, who discussed the expansion at a groundbreaking ceremony.

"The total market for automotive (memory chips) is doubling in a matter of three to four years," Mehrotra told Investor's Business Daily. "The total market for fast memory and storage will grow from under $3 billion in 2017 to approximately $6 billion by 2021."

Advanced driver-assistance systems, autonomous vehicles and infotainment systems helped propel the need for more automotive chips, he said.

"Micron has No. 1 market share in automotive today and our customers continue to project stronger demand for our solutions going out in the future, and hence we are preparing this new clean room in order to transition to newer technology nodes to support their future demand," he said.

The factory, located 40 miles west of Washington, D.C., produces Nand, Nor and DRAM memory chips. It currently employs about 1,400 workers and Micron expects to add 1,100 more with the expansion project.

Micron Technology To Establish R&D Facility

The initial clean room expansion is set for completion in fall 2019. Production will ramp up starting in the first half of 2020. The expansion will add less than 5% to Micron's global clean-room space footprints. It will primarily support DRAM and Nand technology transitions.

As part of the expansion, Micron also will establish a global research development center in Manassas, Va. It will develop memory and storage systems mainly focused on automotive, industrial and networking markets. The research and development center will include laboratories, test equipment and a staff of about 100 engineers, Micron said.

"Micron considered locations around the world (for the new plant), but they ultimately chose Virginia," the state's governor, Ralph Northam, said at the event.

The state is working hard to attract companies ranging from startups to large, successful corporations, Northam said. Micron's latest investment will help cement Virginia's reputation as a top location for business, he said.

Northern Virginia and the greater Washington, D.C., area are considered among the front-runners to attract Amazon.com's (AMZN) second headquarters, dubbed HQ2. Amazon expects to pick a location for the massive new center later this year.

Micron Technology shares dipped 1% to 51.83 on the stock market today.

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