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Micron capital spending to peak at $4 billion in fiscal 2007 |
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Oct 06, 2006 at 12:33 AM |
 Micron Technology plans to spend in the region of $4 billion US dollars in its fiscal 2007 period, the company announced, as part of its fiscal fourth quarter declarations. In its 2006 fiscal year, the company spent $1.6 billion on capital expenditure as it started production of NAND Flash memory in its JV with Intel, IMFT as well as preparing two 300mm fabs for NAND and DRAM production expansion.
Micron expects that slightly more than half of the significant $4 billion CapEx will be allocated to the IMFT operations that include further ramping at its Virginia 300mm facility and first phase ramps at Lehi, which is due to ramp in early 2007. Approximately $1 billion will be allocated to TECH Semiconductor in Singapore as the fab will start production of DRAM in 2007 with the conversion of the fab from 200mm to 300mm wafer production getting underway. Approximately another $1 billion will be allocated to existing facilities as well as the new mask shop JV with Photronics. Company executives stated in a conference call with financial analysts that the $4 billion CapEx plan for 2007 would be the peak for spending over the next few years. The company is also planning to build another 300mm fab for the IMFT JV but no official announcement concerning this move was announced. However, a decision is expected in the next few months, industry observers have noted.
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