U.S. chipmaker Micron Technology has announced plans to invest Sh3.1 trillion in a new chip manufacturing plant in Singapore as global demand for NAND memory chips continues to surge.
The project, unveiled on Tuesday, is aimed at easing supply pressure caused by rapid growth in AI use and data-driven technologies. The facility will include more than 700,000 square feet of cleanroom space and is designed to support large-scale production as the memory chip market struggles to keep up with demand.
“Wafer output is set to begin in the second half of 2028,” Micron said in a statement on Tuesday, describing the development as a long-term investment expected to run over a decade.
Micron already has a strong footprint in Singapore, where it manufactures about 98 percent of its flash memory chips. Alongside the new NAND plant, the company is also constructing an advanced packaging facility valued at Sh903 billion. The plant will focus on high bandwidth memory chips used in AI systems and is scheduled to begin production in 2027.
“The HBM chip packaging facility in Singapore is on track to contribute to supply in 2027,” the company said, underlining the country’s growing role in its global supply chain.
The expansion comes as industry experts caution that shortages in memory supply could last until late 2027. In response, Micron and its key competitors, including Samsung and SK Hynix from South Korea, are moving quickly to add new production lines.
Bryan Ao, an analyst at TrendForce, said demand has risen faster than many expected. “The market’s demand for high-performance storage equipment has been growing much faster than expected amidst the expansion of AI inference applications, and major North American cloud service providers have been exhibiting robust order pulls since the end of last year to seize on opportunities of the AI agent market.”
According to TrendForce, Micron ranked as the fourth largest flash memory chip supplier in the third quarter of 2025, with a 13 prcent share of the market.
The Singapore investment follows Micron’s recent talks to acquire a fabrication site from Powerchip in Taiwan for Sh232.2 billion. The move is intended to increase the company’s DRAM wafer output as competition in the memory sector intensifies.
Earlier this month, SK Hynix announced it would bring forward the launch of a new factory by three months and begin operations at another plant in February, adding further pressure to scale production.
Micron’s growing investments in Singapore and other markets reflect a wider industry effort to address chip shortages affecting industries such as consumer electronics and AI services. By expanding output of NAND and HBM chips, the company aims to support global AI infrastructure and improve supply stability.
