Micron to invest $24 billion in Singapore plant as AI boom strains global memory supply

Micron Technology connected Tuesday committed astir $24 cardinal to grow its wafer manufacturing operations successful Singapore, arsenic the American representation chipmaker moves to grow accumulation amid planetary shortages. 

In a property release, Micron said the concern would adhd 700,000 quadrate feet of cleanroom abstraction —highly-controlled manufacturing areas designed to forestall contamination — astatine an existing NAND manufacturing complex.

Production of NAND, a benignant of representation spot wide utilized successful idiosyncratic computers, servers and smartphones, is expected to commencement successful the 2nd fractional of 2028.

Demand for NAND exertion has been skyrocketing successful caller months, driven by the accelerated enlargement of artificial quality and data-centric applications.

In effect to the shortage, Micron and its representation competitors, including Samsung Electronics and SK Hynix, person been expanding output.

Micron operates manufacturing facilities successful Singapore arsenic portion of its broader Asian accumulation network, which also includes sites successful China, Taiwan, Japan, and Malaysia.

The institution is besides gathering a $7 billion precocious packaging works successful Singapore to nutrient high-bandwidth memory, a benignant of dynamic random-access memory, oregon DRAM, utilized successful AI applications.

The pivot by Micron and different representation makers to prioritize high-bandwidth representation accumulation has contributed to shortages of different types of representation chips. These shortfalls are expected to past done precocious 2027, according to immoderate estimates. 

Micron said its high-bandwidth representation facility, besides located successful the aforesaid Singapore manufacturing complex, is connected way to lend meaningfully to its HBM proviso successful 2027. 

"As HBM becomes a portion of Micron's Singapore manufacturing footprint, the institution expects opportunities for synergies betwixt NAND and DRAM production," the institution said successful its release. 

Micron added that it plans to negociate the gait of capableness enlargement astatine the caller installation based connected marketplace demand.

The recently announced NAND enlargement is acceptable to make astir 1,600 jobs successful fab engineering and operations, incorporating AI, robotics, and astute manufacturing. That follows the instauration of astir 1,400 caller positions tied to the high-bandwidth representation plant. 

"Micron's latest enlargement volition fortify our semiconductor ecosystem and further anchor Singapore arsenic a captious node successful the planetary semiconductor proviso chain," said Jermaine Loy, managing manager of Singapore's Economic Development Board, which encourages section semiconductor manufacturing done assorted incentives and policies.

Shares of Micron roseate implicit 3% successful overnight trading connected Robinhood pursuing the announcement.