U.S. memory chipmaker Micron Technology said on Tuesday it plans to invest $24 bn in a new semiconductor manufacturing facility in Singapore. The company moves to expand production amid a sharp global shortage of memory chips.
The project, first reported by Reuters, comes as the semiconductor industry races to build infrastructure for artificial intelligence, leaving manufacturers of consumer electronics and AI services competing for limited supplies of memory components.
Micron said the investment, spread over the next decade, will fund an advanced wafer fabrication plant aimed at meeting rising demand for NAND flash memory driven by AI and data-heavy applications. Wafer production is expected to begin in the second half of 2028 at a cleanroom complex covering more than 700,000 square feet.
Singapore Remains Core to Micron’s Global Output
Singapore already accounts for 98% of Micron’s flash memory production. The company is also constructing a $7 bn advanced packaging facility there for high bandwidth memory used in AI chips, with production scheduled to start in 2027. Micron said the HBM packaging plant remains on track to add supply that year.
Analysts said the global memory shortage could persist until late 2027, even as Micron and rivals Samsung Electronics and SK Hynix plan new production lines and move to accelerate start-up timelines.
TrendForce analyst Bryan Ao said demand for high-performance storage equipment is rising far faster than expected due to the expansion of AI inference applications. He added that large North American cloud service providers have increased orders since late last year to capitalise on growth in AI agents, pushing contract prices for enterprise solid-state drives up by an estimated 55% to 60%.
According to TrendForce data, Micron ranked as the world’s fourth-largest flash memory supplier in the third quarter of 2025 with a 13% market share. The company said last week it is in talks to acquire a fabrication facility in Taiwan from Powerchip for $1.8 bn, a move that would expand its DRAM wafer capacity.
SK Hynix said this month it plans to bring forward the launch of a new factory by three months and begin operating another new plant in February.
Kursiv also reports that Intel struggled to meet demand for server chips used in AI data centres and forecast quarterly revenue and profit below market estimates.
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