Reuters - Micron boosts US investment plan by $30 billion amid Trump's onshoring

Micron boosts US investment plan by $30 billion amid Trump's onshoring push

WASHINGTON, June 12 (Reuters) - Memory chip maker Micron Technology (MU.O), opens new tab said on Thursday it is expanding its U.S. investments by $30 billion as President Donald Trump presses companies to boost U.S. investments and threatens new tariffs on semiconductors.

Micron now says its planned investments will total $200 billion. The company last year said it planned to invest around $100 billion in manufacturing in New York and $25 billion in Idaho.

In December, the U.S. Commerce Department under former President Joe Biden finalized a nearly $6.2 billion government subsidy for Micron to produce semiconductors in New York and Idaho, one of the largest government awards to chip companies under the $52.7 billion 2022 CHIPS and Science Act.

Trump has repeatedly threatened to kill the CHIPS act. His administration is renegotiating some of Biden's grants to semiconductor firms, Commerce Secretary Howard Lutnick said last week.

AI chip leader and Micron customer Nvidia (NVDA.O), opens new tab said in April it is planning to build AI servers worth as much as $500 billion in the U.S. over the next four years with help from partners such as Taiwan's TSMC (2330.TW), opens new tab.

Micron's additional investment will center around building a second leading-edge memory fab in Boise, Idaho, and expanding a manufacturing facility in Manassas, Virginia.

"These investments are designed to allow Micron to meet expected market demand, maintain share and support Micron's goal of producing 40% of its DRAM in the U.S," the company said, referring to a type of widely employed memory chip.

DRAM chips are key components in personal computing, cars, industrial operations, wireless communications and artificial intelligence and Micron's High-Bandwidth Memory is critical for enabling new AI models, officials have said.

The company will also dedicate about $50 billion to R&D, Micron said.

"Micron's investment in advanced memory manufacturing and HBM capabilities in the U.S., with support from (the) Trump administration, is an important step forward for the AI ecosystem," Nvidia CEO Jensen Huang said.

Micron also said it finalized a $275 million direct funding award under the CHIPS Act to expand its Manassas facility.

Reuters : After Trump feud, role of Musk's SpaceX in Golden Dome missile shield

After Trump feud, role of Musk's SpaceX in Golden Dome missile shield in question

WASHINGTON, June 12 (Reuters) - The role of Elon Musk's SpaceX in an ambitious new U.S. missile defense system is in question following the dramatic feud last week between the billionaire entrepreneur and President Donald Trump, according to three people familiar with the project.

The White House until recently had considered a plan for SpaceX, Musk's rocket and satellite venture, to partner with software maker Palantir (PLTR.O), opens new tab and drone builder Anduril to construct crucial elements of the project, dubbed "Golden Dome." The administration had instructed the Pentagon to prioritize a network of satellites for the purpose, these people said.

But a new framework for the system, which would seek to track and prevent possible missile attacks against the United States, is now being considered that could reduce the role of SpaceX. One possibility, the three people said, could initially forego SpaceX's satellite capabilities and focus on the expansion of existing ground systems for missile defense instead.

In a statement, a White House spokesman said "the Trump Administration is committed to a rigorous review process for all bids and contracts." A senior Defense Department official said the Pentagon "has no announcements regarding future contracts associated with the Golden Dome effort."

SpaceX, Anduril and Palantir didn't respond to requests for comment.

A reduced role for SpaceX would represent the first known setback to Musk's huge volume of business with the U.S. government since his break with Trump last week. The shift in plans, especially for a project that Trump has touted as paramount for U.S. defense strategy, also underscores the highly personalized nature of the president's leadership, aerospace and defense experts said.

"That people guiding the program or building it are approved based on their political affiliation signals a real concern that the project itself is very politicized and not being conducted on the technical merits," said Laura Grego, a missile defense expert and research director at the Union of Concerned Scientists, a non-profit based in Cambridge, Massachusetts.

In its statement to Reuters, the White House said any decision would be made "prioritizing the best deal for America and leveraging the most advanced and innovative technology."

Trump in May said the defense shield should be operational by the end of his presidency, January 2029. But industry experts have said that timeframe, and a projected cost of some $175 billion, could be too optimistic.

The change in the proposed "architecture" of the system, the three people said, could have the political advantage of allowing the current administration to deliver at least a portion of it. It isn't clear how soon a final decision on the project could come or whether the ultimate role of any company, including SpaceX, has been determined.

Trump's efforts to roll out the project fast have led to uncertainty about the project's details and a scramble by contractors to be involved, industry experts and some of those involved in its development told Reuters. "To this day, no one knows what the requirements are," said one of the people familiar with the process. "There isn't a coordinated effort with a true vision. All of these companies are just grabbing at this pot of money."

SpaceX, Anduril and Palantir were all founded by entrepreneurs who have been major political supporters of Trump. The three companies had previously met with top administration officials and decisionmakers from the Defense Department to discuss Golden Dome, according to people familiar with those discussions.

Before his high-profile falling out with the president, Musk served as a key Trump advisor and donated more than a quarter of a billion dollars to help elect him. But the recent dispute, which included Musk calling for Trump's impeachment and accusing the president of improper involvement with disgraced financier and sex offender Jeffrey Epstein, triggered the change in direction, the three people told Reuters.

"Because of the blowup, the Pentagon has been given the space to look at other alternatives," one of the people said.

In recent days, Musk has sought to temper the dispute, saying he regretted some of his comments and taking down some of his social media criticism of Trump, including the call for impeachment. Earlier this week, Press Secretary Karoline Leavitt told reporters that Trump appreciated Musk's apology and that she was unaware of any administration efforts to review Musk contracts because of the dispute.

Reuters couldn't determine whether Musk's conciliatory overtures might improve SpaceX's chances of winning Golden Dome contracts or securing further new business with the U.S. government.

SpaceX had pitched for a part of the Golden Dome initiative called the "custody layer," a constellation of between 400 and 1,000 satellites that would detect missiles, track their trajectory, and determine if they are heading toward the U.S., Reuters reported in April. In a January 27 executive order, Trump mandated the selection of a proposed "architecture" for Golden Dome and an implementation plan by the end of March.

The order called a missile attack "the most catastrophic threat facing the United States."

>>> US After Hours Summary: RH +19.2% up big on earnings; ADBE -0.6% ticks lower

After Hours Summary: RH +19.2% up big on earnings; ADBE -0.6% ticks lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: RH +19.2%

Companies trading higher in after hours in reaction to news: NEXT +6.6% (finalizes EPC Contract Refresh for Train 4 and executed EPC contract for Train 5), FLOC +4.5% (authorizes new $50 mln share repurchase program), EFX +2.1% (secures 35 new patents), DOCN +0.9% (DOCN and AMD to collaborate), WPC +0.6% (increases dividend), XPRO +0.1% (names new CFO), FBK +0.1% (FBK and SSBK receive all regulatory approvals needed to complete merger), COHR +0.1% (introduces diamond-silicon carbide material)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ADBE -0.6%

Companies trading lower in after hours in reaction to news: NOG -1.3% (proposed reopening of $150 mln convertible notes offering), SLN -0.6% (presents Phase 1 data for divesiran), DKNG -0.6% (will implement 50-cent transaction fee in Illinois), KVUE -0.2% (exploring sale of some of its skin health and beauty brands, according to Reuters), AAPL -0.1% (targets spring of 2026 for its delayed upgrade of Siri, according to Bloomberg)

The Information : Travel Software Startup Navan to File This Month for Fall IPO

Travel Software Startup Navan to File This Month for Fall IPO
Travel software startup is one of several companies going public as tech offerings pick up.

The Takeaway
• Navan will file confidentially amid pickup in offerings
• Company is backed by Andreessen Horowitz and Lightspeed Venture Partners
• Tech IPOs are coming at fastest pace since the start of the drought in mid-2023

Navan, a corporate travel software startup, is planning to file confidentially for an initial public offering as early as next week, two people familiar with the matter said, a further sign of a rebound in public listings for venture-backed startups.

The company, backed by Lightspeed Venture Partners and Andreessen Horowitz, is one of a handful of VC-backed software firms that have taken recent steps to go public this year. Others include designer-focused company Figma and cybersecurity startup Netskope. Each company is at least 10 years old and faces pressure from employees and investors to sell shares.

Navan, formerly known as TripActions, is among the dozens of aging startups that have been preparing, on and off, for IPOs for several years. Navan is working with Goldman Sachs as its lead underwriter for an IPO in the fall. Confidential IPO filings kick off a monthslong process with securities regulators before companies release those filings publicly and then launch their investor road shows. (See our Tech IPO Tracker for more details.)

A Navan spokesperson declined to comment.

Another startup that’s been aiming for an IPO for years is banking app Chime, which went public Wednesday at $27 a share, slightly above its initial price range. Shares were set to start trading significantly above the offer price Thursday.

Navan’s business cratered during the pandemic, when corporate travel collapsed. It generated about $540 million in revenue in its last fiscal year, which ended in January, up by more than one-third from the previous year, another person said. The company was still burning cash last year. It is run by CEO Ariel Cohen, a former Israeli tank commander, who has a reputation for a blunt and polarizing management style, The Information previously reported.

The company was last valued at $9.2 billion in 2022, according to PitchBook. The price it is seeking in the IPO isn’t known. A string of venture capital–backed companies have gone public at lower valuations than in their prior private rounds of funding, including Chime at more than $11 billion, down from $25 billion.

Navan competes with SAP Concur and American Express Global Business Travel Group to sell travel booking and expense management software. The company says its software is easier to use and more personalized than its rivals’. In a 2022 investor presentation, it compared itself to a “personalized ‘Amazon for travel’ experience.”

The company raised its earliest funding from Zeev Ventures, Lightspeed and Andreessen. It later raised debt from Greenoaks and Coatue Management. Navan would be one of a few Lightspeed-backed companies to go public recently, including data backup software firm Rubrik, which went public last year, and Netskope, which is aiming for the fall.

Just 20 tech companies went public in the last two years, well below historic norms, but activity is picking up. Six tech firms have gone public in the last three months, the most in any three-month span since the start of the IPO drought in mid-2023.

Shares of the 20 tech companies are up an average of 75% from their IPO price since their listing dates, according to Morgan Stanley. That’s significantly higher gains than for the overall Nasdaq composite over that period.

Some newly issued tech stocks have soared even higher, thanks in part to enthusiasm from retail traders. Those include AI cloud provider CoreWeave and stablecoin issuer Circle.

Ticket marketplace StubHub is also planning to go public as soon as this summer, and buy now, pay later company Klarna is likely to go public in the fall. Both firms delayed IPOs in the spring, in the wake of tariff-induced stock market volatility.

WSJ : Iran Says It Will Open Secret New Enrichment Site After U.N. Atomic Agency

Iran Says It Will Open Secret New Enrichment Site After U.N. Atomic Agency Censure
Move casts shadow over nuclear talks while Trump says an Israeli strike ‘could very well happen’

Key Points
  • Iran will open a third uranium enrichment site, after being cited for non-compliance by the U.N. nuclear watchdog.
  • President Trump said an Israeli strike on Iran “could very well happen,” while the U.S. is set to hold a sixth round of nuclear negotiations with Iran.
  • Iran will accelerate production of near-weapons-grade uranium and install centrifuges in the new site, according to Iranian state media.

Iran said Thursday it would soon open a third uranium enrichment site, while President Trump said that an Israeli strike on the country “could very well happen.”
Iran’s announcement about the enrichment site came after the United Nations nuclear watchdog agency decided for the first time in two decades that Tehran had failed to comply with its nonproliferation obligations.

The U.S. is set to hold its sixth round of nuclear negotiations between the U.S. and Iran on Sunday. Trump is trying to persuade Tehran to stop producing fissile material as part of a new nuclear deal.

Trump said earlier this week that he had grown less confident about striking a deal with Tehran, but in remarks to reporters on Thursday said that he thought an agreement was “fairly close.”

“I would love to avoid a conflict,” he said. “They’re going to have to be willing to give us some things that they’re not willing to give us right now.”
The president has said he could take military action against Iran if nuclear talks fail. Israel has long warned it would strike Iran’s sites if it believed Tehran was starting to build a nuclear weapon, something Tehran claims it has never sought to do.

Asked if an Israeli strike on Iran was imminent, Trump replied on Thursday: “I don’t want to say it’s imminent but it looks like something that could very well happen.”

The head of Iran’s atomic agency, Mohammad Eslami, said Tehran would accelerate its production of near-weapons-grade uranium and open a previously unrevealed enrichment site in what he said is a secure location, according to Iranian state media.
Eslami said Iran was starting the process of readying and installing centrifuges in the new site and would start producing fissile material there as soon as it was ready. That would suggest Iran has been working on the site in secret for some time.
He said Tehran informed the International Atomic Energy Agency about its plans immediately after Thursday morning’s vote. The IAEA didn’t immediately comment.
Iran currently has two main enrichment sites. One is underground, at Natanz, while another is built deep into a mountainside, near the holy city of Qom, at Fordow. Iran kept the construction of Fordow secret for years before it was revealed by Western officials in 2009. Both are built in a way to protect them from strikes by Israel or the U.S.
Tehran’s announcement comes ahead of a sixth round of nuclear negotiations with the U.S. Photo: Abedin Taherkenareh/EPA-EFE/Shutterstock
Iran has in the past made claims about its planned nuclear work that haven’t come to fruition. The country is also heavily monitored by foreign intelligence agencies, which have frequently picked up Iranian nuclear work the country sought to keep secret.
Under IAEA rules, Iran is supposed to give the agency advance notice of any plans to build nuclear sites, but Tehran has refused to abide by those obligations for several years, citing the collapse of the 2015 Iranian nuclear deal. The IAEA and Western member states have repeatedly urged Iran to resume compliance, saying the issue is unrelated to the 2015 agreement.
Iran has rapidly escalated its production of fissile material in the past six months and is producing around one nuclear weapon’s worth of 60% highly enriched uranium a month, principally at Fordow. As part of Thursday’s announcement, Iran said it would further increase its production of highly enriched uranium at Fordow by replacing basic centrifuges it uses to enrich uranium with more advanced, faster ones.
The addition of a third enrichment site would give Iran greater latitude to speed up its nuclear program. Iran already has enough highly enriched uranium to make around 10 nuclear weapons, according to IAEA data.
David Albright, president of the Institute for Science and International Security, said Iran could produce enough highly enriched uranium for 19 nuclear weapons within three months, allowing it to start to build a real nuclear arsenal.

Eslami provided no details of the new site. There have long been concerns in Israel and the U.S. that Tehran was planning to place a new enrichment facility deep underground at its Natanz site, where it has carried out several years of construction work on a tunnel complex. Such a location could be very hard to strike.
Albright said that Iran could be nearing completion of its work on the underground complex and that the location could hold a small enrichment site.
Iran’s announcements came after Iran was declared to be in noncompliance with IAEA safeguard rules for the first time in 20 years. The IAEA board of member states passed a noncompliance resolution by 19-3. The resolution was pushed by the U.S. and European powers. Russia, China and Burkina Faso voted against it, diplomats said.

The vote was called over Iran’s repeated refusal over the past six years to explain the presence of undeclared nuclear material in Iran.
Last month, the IAEA warned it couldn’t say with certainty that Iran hadn’t diverted undeclared nuclear material—potentially for a military purpose—that was found in the country after 2018, when the U.S. pulled out of the 2015 nuclear accord.
The U.S. says it has no evidence Iran has decided to develop a nuclear weapon, but U.S. officials say it could take Iran just a few months. U.S. intelligence officials said last year that it was becoming more likely Iran might decide to build a bomb and that Tehran was conducting work that could help it do so.
The IAEA vote opens the way for Iran’s nuclear work to be referred to the U.N. Security Council for action. European diplomats, who pushed the resolution alongside Washington, say that unless Iran reverses course, they would later this year reimpose the international sanctions lifted on Iran under the 2015 deal.
A recent satellite image of Iran’s Natanz facility. Photo: Planet Labs PBC/Associated Press
Iran has said that if sanctions are snapped back, it could kick out inspectors and leave the Non-Proliferation Treaty, which obliges participants not to develop nuclear weapons.
Speaking in Oslo, Iranian Foreign Minister Abbas Araghchi said the IAEA board decision will make Sunday’s nuclear talks in Oman harder.
“Of course, this meeting will take place in the context of a new resolution that has been adopted by IAEA, which adds to the complexity of the discussions,” he said. “However, we will be in Muscat to defend the rights of the Iranian nation…and to defend the nuclear achievements of Iranian scientists.”
The vote comes as the U.S. moves to draw down its presence in parts of the Middle East to essential personnel, the State Department and Pentagon said Wednesday.
Experts and former officials say that Israel could try to defuse what it sees as the threat to its security of a nuclear-armed Iran if the deal talks are stymied. Trump said recently that he warned Israeli Prime Minister Benjamin Netanyahu against taking action—such as a military strike—that could threaten the talks with Iran.
Iran has warned that it would respond to any attack by hitting U.S. bases in the region.
Iranian Defense Minister Amir Aziz Nasirzadeh said Wednesday that if “a conflict is imposed on us…all U.S. bases are within our reach and we will boldly target them in host countries.”
The U.S.-Iran nuclear talks have stumbled over a fundamental divide between the two sides. Trump has said he wants a deal that ends Iran’s enrichment of fissile material, saying that is the only way to ensure Tehran can’t develop a nuclear weapon. Iran has made continuing enrichment its core red line over two decades of nuclear negotiations.