Micron to invest $24 billion in new Singapore memory chip plant

SINGAPORE — U.S. memory chipmaker Micron Technology plans to invest $24 billion to build an advanced semiconductor manufacturing facility in Singapore as part of a global push to expand memory capacity amid persistent supply shortages and surging demand for AI and data-centric applications.

The investment, announced on January 27, 2026, will fund an advanced wafer fabrication plant expected to begin production of NAND flash memory in the second half of 2028, Micron said in a statement. The facility will span roughly 700,000 square feet of cleanroom space.

Micron said the expansion aims to help address an “acute global shortage” of memory chips as industries from cloud infrastructure to enterprise storage accelerate purchases of high-performance storage.

Singapore at the heart of Micron’s memory strategy

Singapore already produces about 98% of Micron’s flash memory chips, and the company is building a separate $7 billion advanced packaging plant for high-bandwidth memory (HBM) — a crucial element in AI servers and accelerators — due to start contributing supply in 2027.

HBM is a premium memory technology used in AI processors to provide very fast data transfer between memory and compute units. Micron’s dual push on both wafer production and HBM packaging reinforces Singapore’s role as a core hub in global semiconductor supply chains.

Global memory market context

Industry analysts say the memory chip market may remain tight through late 2027, even as Micron’s rivals — including Samsung Electronics and SK Hynix — bring new production lines online and accelerate capacity expansions.

TrendForce analysts noted that contract prices for enterprise solid-state drives (SSDs) could rise 55% to 60% as demand outpaces supply for high-performance storage in AI and data-heavy workloads. 

Micron also disclosed it is in talks to acquire a fabrication site from Taiwan’s Powerchip Semiconductor Manufacturing for $1.8 billion to boost DRAM wafer output, as part of broader efforts to expand memory capacity.

Why This Matters

Memory chips are a backbone of today’s digital economy — from cloud data centers to AI training clusters and enterprise storage systems. Micron’s massive Singapore investment reflects how geopolitical and technological shifts are reshaping global semiconductor supply chains, with companies racing to secure production capacity ahead of long-term demand.

The focus on Singapore underscores Southeast Asia’s emergence as a critical node in advanced manufacturing, while efforts to diversify memory production aim to reduce reliance on any single region.

Summary

• Micron plans a $24 billion wafer fabrication plant in Singapore, targeting NAND memory production by H2 2028.
• The company already makes most of its flash memory in Singapore and is building a $7 billion HBM packaging plant due to start supply in 2027.
• Analysts say memory demand remains strong, with potential SSD price rises of 55%–60% as supply strains persist.
• Micron is also in talks to acquire a DRAM fab site in Taiwan to expand production.

FAQs

Q1. Why is Micron investing so heavily in Singapore?

Micron already has a large flash memory manufacturing footprint in Singapore, and expanding there allows it to scale production to meet rising demand from AI and data-center customers.

Q2. What will the new Singapore plant produce?

The new facility will focus on advanced NAND flash memory, used in data storage, enterprise SSDs, and AI-linked systems.

Q3. When will the new plant start production?

Micron expects wafer output in the second half of 2028.

Q4. How does this tie into AI demand?

AI applications drive large memory and storage needs, especially high-performance NAND and HBM memory, making capacity expansion critical.

Q5. What is Micron’s HBM packaging plant?

A separate $7 billion advanced packaging facility in Singapore will produce high-bandwidth memory (HBM), which supports advanced AI accelerators, and is expected to start contributing to supply in 2027. 

Q6. Are memory chip prices rising?

Analyst forecasts suggest contract SSD prices could rise by 55%–60% due to strong demand and constrained supply.

Q7. Who are Micron’s main competitors?

Samsung Electronics and SK Hynix are major memory suppliers also adding capacity amid the global shortage.