Micron Technology has announced plans to invest $24 billion to build a new memory chip manufacturing facility in Singapore, strengthening its production capacity amid a global shortage of memory chips. The move comes as demand rises sharply from artificial intelligence and data centric applications, putting pressure on supply chains across consumer electronics and AI services.
The investment will be spread over the next decade and will focus on an advanced wafer fabrication facility to support growing demand for NAND memory chips. Micron said wafer output from the new plant is expected to begin in the second half of 2028. The project will include a cleanroom area covering more than 700000 square feet, marking one of the company’s largest manufacturing expansions to date.
Singapore already plays a central role in Micron’s global operations, with 98% of its flash memory chips produced in the country. The company is also building a $7 billion advanced packaging facility for high bandwidth memory used in artificial intelligence chips. This packaging plant is scheduled to begin production in 2027 and is expected to add to global supply in the same year.
Industry analysts believe the current memory supply shortage could continue until late 2027, even as major players ramp up capacity. Samsung and SK Hynix are both planning new production lines and moving timelines forward. TrendForce analyst Bryan Ao said contract prices for enterprise solid state drives may rise by 55% to 60% as demand continues to outpace supply.
“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,” he said.
TrendForce data shows Micron held a 13% share of the global flash memory market in the third quarter of 2025. The company is also in talks to acquire a fabrication site in Taiwan for $1.8 billion to boost DRAM wafer output, while SK Hynix plans to accelerate the launch of new manufacturing capacity in early 2026.
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