Micron Technology
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Thanks Adam for reply which I agree with.
So are we buying more or selling some in the latest rebalance. -
Looking at the rebalance earlier in the week we were net sellers of Micron at $860-a very small percentage as it happened which simply reflects the then weight cf the target weight. Clearly very close
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Have Micron just shelved opening another memory plant Taiwan
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No that's not correct. This is all about one smaller Taiwan Labour Union demanding unreasonable pay which would equate to $1M per worker up from about 80k. Obviously the company isnt going to pay it. Who would so management have said , OK, you plan to strike and disrupt us, we will not expand the plant. It's a few billion expansion not a new build.
They've already reached an agreement with the larger union, but a smaller union representing fewer than 3,000 workers is challenging it despite substantial proposed pay increases.
Micron is demonstrating that future investment isn't guaranteed if labour disputes continue and I applaud it. Existing production is unaffected, and the suspended plant wasn't due to open until 2028.
Look at Micron's wider investment programme(250b so 2% in this case is immaterial):
Location
Planned investment
USA – New York, Idaho, Virginia and R&D
$200bn
Singapore – NAND and HBM expansion
$31bn
Japan – Hiroshima expansion
$9.3bn
Taiwan – Tongluo acquisition and expansion
$1.8bn acquisition, plus expansion
Taiwan – Taoyuan suspended project
$3–4.5bn
These are multi-year programmes, not all committed expenditure, and include R&D.
The suspended project is tiny relative to Micron's global expansion ambitions. If the dispute isn't resolved, Micron can redirect future capital elsewhere. And any disruption in supply will only cause prices to price so it's a win either way.
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Thank you
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Micron looks like its dropped another 11% today so far.
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Micron looks like its dropped another 11% today so far.
@Jason-Knowles said in Micron Technology:
Micron looks like its dropped another 11% today so far.
Looks like it's DRAM kerfuffle rather than HBM, and I understand that HBM is where the $ is. Although that's uneducated guesswork from someone who doesn't know what he's talking about.
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It's speculation the new Governors will somehow stop the build out. A ludicrous idea.
Firstly all of 27 and part of 2028 is already in construction-nothing happens (no change).
For some of 2028 and beyond im sure whoever builds them will have to deal with more bureaucracy (but actually it's more about who pays for what-eg build up 500 affordable homes and a power plant) but one way or the other the facilities will be built. All States compete for capital-capital means taxes and jobs. Politicians can say what they want to get elected but the reality is if any Governor decides to take the green route there will be a long line of others willing to take the money. It's common sense.No one wants to see days and weeks like these but we have seen them before. Just remember, this is pure knee jerk speculation against the back drop of unmet demand so high there is a long line of takers.
If DC X is delayed there are 5 more ready to jump in and get allocated 'sooner' that they thought.