Step 1: The magnetic moment \( M \) of a current loop is given by \( M = I A \), where \( A \) is the area of the loop. Step 2: When the wire is bent into a semicircular arc, the area is half of the area of a full circle with the same radius. Thus, the magnetic moment increases by a factor of 2. The new magnetic moment is \( \dfrac{2M}{\pi} \).