Rumor
Micron projected to increase annual capital expenditure to 20 billion dollars by 2026
Saturday, January 3, 2026 at 02:19 AM
Micron's capital expenditure is projected to reach approximately $10 billion in 2024, followed by $3.5 billion in the first half of 2025, with estimates for 2026 reaching $20 billion. The report also highlights significant spending from CXMT.
Context
ChangXin Memory Technologies (CXMT) is aggressively scaling its capital expenditure, which is now projected to reach $20 billion by 2026. This follows a landmark $10 billion spend in 2024 and a pivot to profitability in 2025 after years of heavy operating losses. The surge is driven by record utilization rates and a strategic shift toward high-margin products, including DDR5 and LPDDR5X, as the company moves to capture a projected 15% share of the global DRAM market by late 2025.
This investment ramp places CXMT on a direct collision course with Micron, which has also forecasted its own $20 billion capex for fiscal 2026 to address the AI-induced HBM shortage. To sustain this momentum, CXMT is preparing a $4.2 billion IPO in Shanghai for Q1 2026, targeting a total valuation of $42 billion. By prioritizing technology upgrades and aiming for HBM3 mass production by late 2026, the company is evolving from a legacy supplier into a formidable fourth global competitor in the high-end semiconductor supply chain.
Sources (1)
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