- Micron commits long-term capital to expand global NAND manufacturing capacity
- New Singapore wafer production will not begin until the second half of 2028
- Demand for AI infrastructure continues to strain global memory supply chains
Micron has announced a $24 billion investment to expand memory production in Singapore, adding a large wafer fabrication facility to boost global NAND supply.
The project comes as the global chip crisis continues to affect multiple technology sectors, driven mainly by sustained demand from AI infrastructure and data-intensive computing.
The company says the new factory will support growing NAND demand over the next decade, although production is not expected to begin until the second half of 2028.
A long-term expansion plan
The new wafer facility will add more than 700,000 square feet of cleanroom space at Micron’s existing Singapore manufacturing complex.
Wafer output is scheduled to begin several years from now, reflecting the long timelines involved in bringing advanced memory manufacturing capabilities online.
Micron already produces most of its flash memory chips in Singapore, making the country a key pillar of its global manufacturing strategy.
Alongside the NAND expansion, Micron is also building a US$7 billion state-of-the-art packaging facility at the same site to support high-bandwidth memory production. This facility is expected to start contributing to the supply in 2027.
However, analysts expect tight memory supply conditions to persist into late 2027, even as manufacturers announce new capacity.
The push toward high-bandwidth memory has absorbed manufacturing resources that could otherwise support conventional NAND and DRAM output.
This shift has contributed to shortages across several memory categories, including those used in consumer electronics and enterprise storage.
Micron’s competitors are also accelerating capacity plans. Samsung and SK Hynix have both revealed efforts to bring new production lines online earlier than previously planned.
Micron is also exploring further expansion opportunities, including talks to acquire a manufacturing site in Taiwan that could increase DRAM wafer output.
The expanded Singapore complex is expected to create around 1,600 jobs linked to NAND manufacturing, following previous hires linked to the high-bandwidth memory factory.
Micron has said the facility will incorporate automation, robotics and smart manufacturing systems.
Singapore’s government has welcomed the investment as strengthening its role in the global semiconductor supply chain.
While Micron’s investment signals confidence in long-term demand, the delayed production start raises questions about how much relief it can provide in the short term.
The scale of industry shortages suggests that no single facility, even one of this size, is likely to address supply constraints on its own.
Via Nikkei Asia
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