Micron to Build $24bn Chip Plant in Singapore

Micron to Build $24bn Chip Plant in Singapore Amid Shortage

27th Jan. 2026

U.S. memory chipmaker Micron Technology has announced the plans to build a $24-billion semiconductor manufacturing plant in Singapore. The announcement comes amid an acute global shortage of memory chips, which is driven largely by the rapid expansion of artificial intelligence infrastructure.

The image shows an aerial view of a modern corporate building with the Micron logo prominently displayed on the rooftop. The photo highlights the scale and industrial design of the facility, emphasizing Micron’s presence in the semiconductor industry.

Reported by the leading news agency, it said that the investment underscores the scale of the supply crunch that has spread from consumer electronics to cloud computing and AI service providers. Meanwhile, Micron said that it has already broken ground on the new facility, which will be located at its existing NAND manufacturing complex in Singapore. On the other hand, Wafer production is expected to begin the project in the second half of 2028. This project will become one of the company’s most significant long-term bets.

Singapore officials already welcomed the announcement. They said that the project would strengthen the city-state’s semiconductor ecosystem and reinforce its position in the global supply chains. The expansion is also expected to create around 1,600 new jobs, in addition to roughly 1,400 roles that were announced under earlier plans.

Micron’s New Singapore Fab to Boost NAND and DRAM Output

According to Micron, the new plant will be Singapore’s first double-storey wafer fabrication facility. It is designed to eventually provide about 700,000 square feet of cleanroom space. This capacity is critical for advanced semiconductor manufacturing. The company said that the scale and design of the fab would allow it to support future generations of memory technology.

Micron already manufactures 98% of its flash memory chips in Singapore, which makes the country central to its global operations. Moreover, the company is building a $7-billion advanced packaging facility for high-bandwidth memory (HBM) at the same site, which is due to start production in 2027. Micron said the new wafer fab and the HBM packaging plant could create operational synergies across NAND and DRAM production. This, in turn, would allow the company to respond more quickly to market demand.

AI Demand Drives Memory Shortages Amid Micron’s Singapore Expansion

The announcement comes after analysts have warned that the memory supply shortfall could continue until late 2027. Despite this, major manufacturers are moving ahead with expansion plans. The scramble to build AI infrastructure has sharply increased demand for high-performance storage, while supply has struggled to keep pace. TrendForce analyst Bryan Ao said that contract prices for enterprise solid-state drives are expected to rise by 55% to 60% as demand continues to outstrip supply.

“The market’s demand for high-performance storage equipment has been growing much faster than expected amidst the expansion of AI inference applications,” he said. He added that major North American cloud service providers have demonstrated strong order momentum since the end of last year. At the same time, they’re also aiming to capitalize on opportunities in the emerging AI agent market. According to TrendForce data, Micron was the fourth-largest flash memory chip supplier in the third quarter of 2025. At that time, it held a 13% of market share.

Micron Competitors Expand Chip Capacity Amid Global AI Demand

Meanwhile, Micron’s competitors are also moving quickly. Last week, the company said that it was in talks to buy a fabrication site from Powerchip in Taiwan for $1.8 billion. It is the move that would further boost its DRAM wafer output. At the same time, South Korea’s SK Hynix has told a leading news agency that it plans to hasten the opening of a new factory in three months and begin operating another new plant by February.

Samsung Electronics has also outlined new production lines as it seeks to defend its market position. Taken together, these investments had highlighted that how fiercely chipmakers are racing to expand their capacity. It also shows how an AI-driven demand reshapes the global semiconductor landscape.

Web Resources on the Investment of Micron in Singapore

1. Reuters.com: Micron plans $24-billion memory chipmaking plant in Singapore
2. WSJ.com: Micron to Invest $24 Billion in Singapore to Boost Chip Production
3. Investing.com: Micron to invest $24 bln in Singapore to expand chip production
4. MSN.com: Micron plans $24-billion memory chipmaking plant in Singapore