Panoramic view of the Micron Technology building in Singapore, June 23, 2020.
Micron Gcm Studio | Reuters
Micron Technology on Tuesday poured about $24 billion into expanding its wafer manufacturing operations in Singapore as the U.S. memory chip maker moves to ramp up production amid global supply shortages.
In the press release, micron The investment will add 700,000 square feet of clean room space (a highly controlled manufacturing area designed to prevent contamination) to the existing NAND manufacturing facility.
Production of NAND, a type of memory chip widely used in computers, servers, smartphones, etc., is scheduled to begin in the second half of 2028.
Demand for NAND technology has skyrocketed in recent months due to the rapid expansion of artificial intelligence and data-centric applications.
In response to the shortage, Micron and memory competitors such as Samsung Electronics and SK Hynix have ramped up production.
Micron operates a manufacturing facility in Singapore as part of a broader Asian manufacturing network that also includes locations in China, Taiwan, Japan and Malaysia.
The company is also building a $7 billion advanced packaging factory in Singapore to produce high-bandwidth memory, a type of dynamic random access memory (DRAM) used in AI applications.
A shift by Micron and other memory makers to prioritize producing high-bandwidth memory has led to shortages of other types of memory chips. These shortages are expected to last until the end of 2027, according to some estimates.
Micron said its high-bandwidth memory facility is also located within the same Singapore manufacturing facility and is expected to contribute significantly to HBM supply in 2027.
“With HBM becoming part of Micron’s Singapore manufacturing site, the company expects opportunities for synergies between NAND and DRAM production,” the company said in a release.
Micron added that it plans to manage the pace of capacity expansion at the new facility based on market demand.
The newly announced NAND expansion will create approximately 1,600 jobs in fab engineering and operations that incorporate AI, robotics, and smart manufacturing. This will be followed by the creation of approximately 1,400 new positions related to the high-bandwidth memory factory.
Germaine Roy, managing director of the Singapore Economic Development Board, said: “Micron’s latest expansion will strengthen our semiconductor ecosystem and further establish Singapore as a key node in the global semiconductor supply chain.” The commission encourages local semiconductor manufacturing through a variety of incentives and policies.
Following the announcement, Micron’s stock price rose more than 3% in overnight trading on Robinhood.
