U.S. memory chipmaker Micron Technology has announced plans to spend $24 billion to build a new chip factory in Singapore. The goal is to increase production amid a global shortage of memory chips. The plan, first reported by Reuters, comes as demand for artificial intelligence (AI) technology is growing rapidly. Rising demand has put pressure on chip makers, affecting many industries from everyday consumer electronics like smartphones and laptops to companies that provide AI services.
Micron has said that it will spend the next 10 years building a new, advanced factory to make more NAND memory chips. Demand for these chips has increased as AI technology is growing rapidly. The company expects the factory to start producing new chips in the second half of 2028. The company will have a very large cleanroom of 700,000 square feet where they will make chips.
Singapore is very important for Micron’s global operations. At this time, the company is making 98% of their flash memory chips there. Micron is also building a $7 billion facility in Singapore to package high-bandwidth memory (HBM), an important component used in AI processors. The company has said that this new HBM plant is expected to start producing by 2027 and is on schedule.
Industry experts say the global shortage of memory chips might only last until the end of 2027, as major companies ramp
up chip production. Micron’s main competitors, Samsung and SK Hynix from South Korea, are also ramping up production and adding new factories to meet the high demand.
Last week, Micron said it is considering buying a chip factory in Taiwan from Powerchip for $1.8 billion. If the deal goes through, it would further increase Micron’s ability to produce DRAM chips.
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This month, SK Hynix announced it will open a new factory in three months and start operating it in February.
