Micron bets on Singapore to meet soaring AI chip demand
U.S. memory chip maker Micron Technology is set to announce a new investment to expand memory chip manufacturing capacity in Singapore, according to three people briefed on the matter, as the company moves to boost production amid a severe global memory shortage.
The announcement could come as soon as Tuesday, the sources said, News.Az rpeorts, citing Reuters.
One of the people noted that the investment would focus on NAND flash memory. The sources declined to be identified because they were not authorized to speak publicly about the plans.
The planned investment comes as industries ranging from consumer electronics to artificial intelligence service providers struggle with an acute shortage of memory chips, driven largely by the rapid buildout of AI infrastructure worldwide.
Micron already has significant manufacturing operations in Singapore, where it produces about 98% of its flash memory chips. The company is also constructing a $7 billion advanced packaging facility in the city-state to manufacture high-bandwidth memory used in artificial intelligence chips, with production expected to begin in 2027.
Micron and its main competitors — South Korea’s Samsung Electronics and SK Hynix — have recently announced new production lines and accelerated production timelines. Despite these moves, analysts say the global memory supply shortfall could persist through late 2027.
Last week, Micron said it was in talks to acquire a fabrication site from Taiwan’s Powerchip Semiconductor Manufacturing for $1.8 billion in cash, a deal the company said would increase its output of DRAM wafers.
Meanwhile, SK Hynix told Reuters earlier this month that it plans to bring forward the opening of a new factory by three months and begin operating another new plant in February, underscoring the industry-wide push to ease tight memory supplies.
By Nijat Babayev
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