Micron plans a major expansion of chip production in Singapore

Micron Technology has announced plans to invest US$24 billion, or about S$30.5 billion, in a new semiconductor manufacturing facility in Singapore as global demand for artificial intelligence continues to strain supplies of advanced data centre hardware.

The memory chip maker said the investment would support the expansion of its NAND flash memory production, reinforcing Singapore’s role as a key manufacturing base for the company. The move comes as technology companies worldwide race to secure access to components needed to power AI systems, which require vast amounts of fast and reliable memory and storage.

The new plant will be built within Micron’s existing manufacturing complex in Woodlands and is expected to become operational in the second half of 2028. Once completed, it will add 65,000 square metres of cleanroom space, which is essential for the production of advanced semiconductors.

Expansion driven by AI-led demand

The facility will focus on producing NAND flash memory chips for solid-state drives used in data centres. These chips provide faster access speeds and lower latency than traditional hard-disk drives, making them increasingly important for AI workloads that process and store large volumes of data.

Micron said the investment would be spread over 10 years and would raise the company’s total investment in Singapore to more than US$60 billion since it began operations in the country in 1998. This figure includes a US$7 billion high-bandwidth memory facility announced in 2025, aimed at boosting chip output for AI accelerators.

Singapore already serves as Micron’s main production base for NAND flash memory chips. In the first quarter of the company’s 2026 fiscal year, NAND products generated a record US$2.7 billion in revenue, accounting for about 20 per cent of total sales. The country is also Micron’s second-largest site for the assembly of high-bandwidth memory chips, after Taiwan.

Sanjay Mehrotra, president and chief executive of Micron Technology, said the role of memory and storage has changed as AI adoption accelerates. “As AI continues to scale, memory and storage are no longer just components within a system. They have become strategic assets that absolutely enable the potential of AI,” he said.

He added that demand driven by AI is unlike anything the company has seen before, and warned that supply constraints are likely to persist. Micron expects the shortage of memory chips to extend beyond 2026 as customers expand their AI infrastructure.

Economic impact and job creation

The new NAND facility is expected to create about 1,600 jobs across engineering and operational roles. Combined with the previously announced high-bandwidth memory plant, Micron’s latest investments are set to generate around 3,000 new jobs in Singapore.

The plant will also mark a first for the Republic, as it will be Micron’s first double-storey chip manufacturing facility in the country. According to Mr Mehrotra, the design will maximise land efficiency while significantly increasing cleanroom capacity. Overall, the project will raise Micron’s total cleanroom space in Singapore by 50 per cent.

Manish Bhatia, Micron’s executive vice president of global operations, said the company is currently able to meet only half to two-thirds of customer demand. This imbalance has changed how clients approach procurement. He noted that many customers are now seeking multi-year supply agreements rather than the traditional one-year contracts.

“Never ever before have I seen this. Many key customers are seeing that the gap could continue, because their demand could go up,” Mr Bhatia said. He added that growth is also being driven by emerging technologies beyond data centres, including autonomous vehicles and humanoid robotics, which require advanced memory for sensory processing.

In December, Micron announced it would stop selling memory chips to consumers to focus resources on advanced semiconductors used in data centres. The decision reflects the company’s strategic shift towards higher-value products aligned with AI-driven demand.

Singapore’s role in the global semiconductor supply chain

Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, who attended the groundbreaking ceremony for the new facility on 27 January, said geopolitical tensions, supply chain disruptions and rapid technological change increasingly shape global investment decisions.

“This is where Singapore positions itself. We aim to be a trusted hub where globally leading companies can anchor critical activities with confidence, even as conditions remain fluid globally,” Mr Gan said. He added that Micron’s investment is significant not only for its scale but for strengthening Singapore’s position in advanced NAND flash memory manufacturing.

Mr Gan also highlighted the broader benefits for the local workforce. He said AI remains a powerful and long-term growth driver for Singapore’s semiconductor industry and noted that Micron has partnered closely with local educational institutions, including all polytechnics, the Institute of Technical Education and the National University of Singapore’s College of Design and Engineering.

“These partnerships will open up opportunities for students to participate in internships, mentorship and hands-on learning experiences at Micron,” he said. Mr Bhatia added that students involved in internship and training programmes are often given pathways to permanent roles within the company.

Micron’s expansion is also creating opportunities for small and medium-sized enterprises. The company has worked with local firm Techfox to customise autonomous mobile robots for its factory floor, integrating them with smart racks and other robotic systems.

According to the Economic Development Board, Singapore contributes 1 in 10 chips globally and accounts for about 1/5 of worldwide semiconductor equipment production. Over the past two years, the country has attracted more than US$18 billion in semiconductor research, development and manufacturing investments. The sector contributes close to 7 per cent of Singapore’s gross domestic product and employs more than 35,000 people.