Micron Technology just announced a major investment of about $24 billion to expand its wafer manufacturing in Singapore. This move comes as the company aims to ramp up production amid ongoing global shortages of memory chips.
The plan includes adding 700,000 square feet of cleanroom space at an existing NAND manufacturing site. This facility will start producing NAND chips, crucial for devices like PCs and smartphones, in late 2028.
Recently, demand for NAND technology has surged. This increase is driven by advancements in artificial intelligence and data-heavy applications. Micron, along with competitors like Samsung and SK Hynix, is boosting output to address the shortages.
Micron operates several factories across Asia, including in China, Taiwan, and Japan. They are also building a $7 billion plant in Singapore specifically for high-bandwidth memory (HBM), which is vital for AI applications.
Interestingly, the push for HBM production is contributing to shortages in other memory types. Analysts predict these shortages could last until late 2027. As the company integrates HBM production into its Singapore operations, there will be expected synergies between NAND and DRAM manufacturing.
This expansion will create around 1,600 jobs in engineering and operations, focusing on AI, robotics, and smart manufacturing. Jermaine Loy, managing director of Singapore’s Economic Development Board, stated that Micron’s growth is critical for strengthening Singapore’s semiconductor ecosystem.
On a side note, after announcing this expansion, shares of Micron rose over 3% in after-hours trading on platforms like Robinhood.
For further details on Micron’s plans and the semiconductor industry, you can check the official Micron press release.
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