Micron Invests In US Indium Processing Amid China Export Restrictions – MU Stock Still Dips

• The companies plan to sign a long-term supply agreement, but Micron did not disclose the agreement’s financial terms.
• The deal is part of Micron’s plan to invest up to $3 billion in the U.S. semiconductor supply chain.
• China accounts for nearly 70% of global indium production, and export controls and tighter customs checks have raised concerns about access to the material.

Micron Technology (MU) shares were on track to reverse Monday’s gains amid the broader technology sell-off in early morning trade on Tuesday despite announcing strategic funding to Indium Corporation to expand refining and manufacturing in New York.

Micron said the companies plan to enter a long-term supply agreement that will give Micron access to the resulting high-purity materials. Micron did not disclose the amount of its investment or the financial terms of the agreement.

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MU stock fell as much as 2.7% in pre-market trade, mirroring weakness across AI stocks. On Stocktwits, retail sentiment around Micron continued to trend in ‘bullish’ territory over the past day, while chatter dimmed to ‘normal’ from ‘high’ levels.

Micron Expands Its $3B US Supply-Chain Plan

The deal falls under Micron’s broader plan to invest up to $3 billion in strengthening the U.S. semiconductor supply chain, which the company announced in July. The initiative began with $500 million in financing for GlobalWafers’ 300-millimeter wafer plant in Sherman, Texas, alongside a 10-year wafer supply agreement.

That $3 billion plan is separate from Micron’s pledge to spend more than $250 billion on U.S. manufacturing through 2035.

China’s Dominance Adds To Indium Supply Concerns

China produces nearly 70% of the world’s indium, a byproduct of zinc refining. Beijing placed indium compounds, including indium phosphide, under export controls in February 2025. Indium was excluded from the November 2025 trade deal that paused controls on gallium, germanium and antimony.

Reuters reported in June that buyers faced tighter customs checks on indium, while the Defense Logistics Agency sought to build a stockpile.

Indium Corporation makes products including solders, thermal interface materials and specialty metals such as indium, gallium and germanium. Micron did not specify which of its products use the materials covered by the new agreement.

Micron’s New York Expansion Targets AI-Driven Demand

Micron plans to build as many as four DRAM fabrication plants in Clay, New York, over more than 20 years. Its annual report says construction began with the first concrete pour in July, with output from the first fab expected in 2030 and beyond. 

The company expects capital spending of about $11.5 billion in its fiscal first quarter (Q1) and roughly $25 billion in the first half of fiscal 2027, with spending expected to rise further in the second half.

Micron said demand for memory used in AI applications helped drive record revenue of $54.23 billion last quarter. It forecast revenue of $61.5 billion for the following quarter.

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