Key PointsMicron (MU) shares declined approximately 5% during Monday’s premarket session, trading at $929.32Samsung Electronics announced accelerated construction plans for its Yongin semiconductor facility, aiming for volume production by 2029South Korean chipmakers SK Hynix and Samsung committed a total of $536 billion toward new semiconductor manufacturing facilitiesMicron increased its domestic capital expenditure commitment to $250 billion from a previous $200 billionWall Street maintains a consensus Buy recommendation with a mean price target of $1,542.05Shares of Micron Technology (MU) declined approximately 5% during Monday’s premarket trading session, reaching $929.32, as market participants expressed concern regarding competing chipmakers’ ambitious capacity expansion initiatives.Micron Technology, Inc., MUThe premarket decline followed a 1.2% decrease on Friday. SK Hynix, which began trading American depositary receipts on Friday, tumbled over 8% in U.S. premarket activity amid similar concerns.The catalyst behind the selloff was Samsung Electronics’ announcement that it would accelerate development of its Yongin semiconductor complex in South Korea. The company now projects volume production from the facility by 2029 — one to two years earlier than previously anticipated.Last month, SK Hynix and Samsung collectively committed 800 trillion won — approximately $536 billion — toward constructing new semiconductor manufacturing facilities in southwestern South Korea. Meanwhile, Micron disclosed last week it was increasing its domestic investment commitment to $250 billion from $200 billion.Investor anxiety centers on a fundamental concern: expanded capacity could eventually pressure memory chip pricing downward. The memory semiconductor sector has historically experienced cyclical patterns, where tight supply conditions transition into oversupply scenarios, subsequently depressing both prices and equity valuations.Industry Experts Predict Supply Constraints Through 2028Not all market observers interpret the capital investment surge as an immediate threat. Brad Gastwirth, global head of research at Circular Technologies, contested the bearish reaction.“Those investments are absolutely necessary, but they are largely supporting demand growth that continues to accelerate rather than creating excess capacity,” Gastwirth wrote.He identified 2028 as the earliest plausible timeframe for memory supply-demand equilibrium, provided AI infrastructure expenditures maintain their growth trajectory.From a technical perspective, Micron maintains a longer-term bullish trajectory. Shares are currently trading 100.2% above the 200-day moving average, though positioned 11.7% below the 20-day moving average, suggesting near-term consolidation. Critical support levels exist around $854.50, with overhead resistance near $1,089.50.Antitrust Considerations Emerge as New Risk FactorA recent Bloomberg Opinion analysis highlighted an additional concern: Micron’s exceptional profitability levels may attract regulatory attention. Micron, SK Hynix, and Samsung collectively command approximately 90% of the worldwide DRAM market. With artificial intelligence demand driving memory prices substantially higher, observers are questioning whether the company continues to require government subsidies considering its earnings performance.The commentary identified potential risks including legal challenges and deteriorating relationships with major customers such as hyperscale cloud computing providers.Wall Street sentiment, however, remains optimistic. Micron holds a consensus Buy recommendation. Cantor Fitzgerald reiterated its Overweight rating and elevated its price objective to $2,000 on June 29. Barclays similarly increased its target to $2,000 on June 25. The average analyst price target currently stands at $1,542.05.Micron is slated to release quarterly financial results on September 22, 2026. Wall Street consensus forecasts earnings of $31.24 per share, compared with $3.03 per share in the year-ago period. Revenue is anticipated at $50.72 billion, up from $11.31 billion in the corresponding prior-year quarter.MU stock traded down 4.83% at $932.00 during Monday’s premarket session.The post Micron (MU) Stock Drops 5% on South Korean Rivals’ $536B Chip Expansion Plans appeared first on Blockonomi.