Micron's Project Faces Delays Due to Environmental Hurdles in Syracuse
Micron Technology, Inc. is facing unanticipated delays in building semiconductor fabs in Syracuse, New York. These delays are due to environmental challenges that have cropped up, posing a significant hurdle for the ambitious project.
Discovery of Endangered Bats
As part of its environmental review, Micron discovered two endangered North American bat species in White Pine Commerce Park. Additionally, there are federally regulated wetlands and streams in the proposed site area. Because of these findings, the company is prohibited from cutting down trees until November when the bats go into hibernation.
Project Timeline Pushed to 2025
These environmental requirements have forced Micron to push the groundbreaking of the project into 2025. Despite this setback, there are still significant benefits for Micron’s project from a preliminary Chips Act deal and incentives from New York State. Once state and federal reviews are complete, Micron plans to start construction.
Plans for Expansion
Micron is also looking to expand its high-bandwidth memory chip production significantly within the U.S. The company is even considering additional manufacturing options in Malaysia.
Analysts' Expectations
Analysts expect Micron's strength to continue into the fourth quarter, driven by pricing trends in DRAM and NAND memory chips. They believe the memory market will remain in undersupply, leading to higher average selling prices, increased revenue, and improved profit margins and earnings per share (EPS).
Stock Performance
However, the environmental setbacks have also impacted Micron's stock performance. On Thursday, the stock traded lower by 2.26% at $149.98.
Micron's future plans, bolstered by state and federal support, focus on overcoming current environmental hurdles while reasserting its commitment to expanding domestic chip production and creating thousands of jobs.
