Micron and SK Hynix emerge stronger after tapping Chips Act funds

Micron secured up to $6.44 billion in direct CHIPS Act funding, announced in December 2024. The company has since raised its total US capital expenditure commitment to over $250 billion through 2035. Construction at Micron’s facility in Clay, New York, began in July 2026, ahead of schedule. The company’s most recent quarterly results underscore why management feels comfortable writing checks that large: $41.5 billion in revenue, gross margins of 84.9%, and earnings per share of $25.11. Guidance for the next quarter points to roughly $50 billion in revenue. SK Hynix received $458 million in CHIPS Act grants and up to $500 million in loans, finalized in December 2024. Those funds are earmarked for a $4 billion advanced high-bandwidth memory packaging facility in Indiana, with volume production expected by the third quarter of 2029. The company’s board approved a separate package worth 54.3 trillion won, roughly $38 billion, for two new fabrication plants in Korea designed to bolster AI memory production through at least 2033. SK Hynix currently dominates the HBM market, holding approximately 58% of global revenue as of the first quarter of 2026. Micron sits at around 21%, roughly lev...