Micron Technology on Tuesday announced plans to invest $24 billion over the next decade to build a new semiconductor manufacturing facility in Singapore, as the company moves to expand capacity amid a severe global shortage of memory chips driven by the rapid build-out of artificial intelligence infrastructure.
The announcement comes as industries ranging from consumer electronics to AI service providers grapple with constrained supplies of memory chips, a situation exacerbated by surging demand from data-intensive and AI-driven applications.
Micron said the investment will support the construction of an advanced wafer fabrication plant focused on NAND flash memory production. The facility will include a cleanroom spanning more than 700,000 square feet, with wafer output expected to begin in the second half of 2028.
The company already manufactures around 98% of its flash memory chips in Singapore, where it is also developing a $7 billion advanced packaging facility for high-bandwidth memory (HBM), a critical component used in AI accelerators. That HBM packaging plant is scheduled to begin contributing to supply in 2027, Micron said.
Industry analysts warn that the tight supply of memory chips could persist until at least late 2027, even as Micron and its main competitors — including Samsung Electronics and SK Hynix — move to add new production lines and accelerate manufacturing timelines.
TrendForce analyst Bryan Ao said demand for high-performance storage solutions is rising faster than anticipated, particularly as AI inference workloads scale globally. He added that major North American cloud service providers have sharply increased orders since late last year to capitalise on emerging opportunities in the AI agent market.
TrendForce estimates that contract prices for enterprise solid-state drives could rise by 55% to 60% as demand continues to outstrip supply.
According to TrendForce data, Micron ranked as the world’s fourth-largest supplier of flash memory chips in the third quarter of 2025, holding a 13% market share.
Separately, Micron said last week that it is in discussions to acquire a fabrication facility in Taiwan from Powerchip Semiconductor Manufacturing for $1.8 billion, a move that would further expand its DRAM wafer output.
