- Micron Commits Long-Term Capital to Expand Global NAND Manufacturing Capacity
- Production of new Singapore wafers will only begin in the second half of 2028
- Demand for AI infrastructure continues to strain global memory supply chains
Micron announced a $24 billion investment to expand memory manufacturing in Singapore, adding a large wafer fab intended to increase the global supply of NAND.
The project comes as the global chip crisis continues to impact several technology sectors, largely driven by sustained demand for AI infrastructure and data-intensive computing.
The company says the new factory will support growing demand for NAND over the next decade, although production is not expected to begin until the second half of 2028.
A long-term expansion project
The new wafer fab will add more than 700,000 square feet of cleanroom space to Micron’s existing manufacturing complex in Singapore.
Wafer production is expected to begin in several years, reflecting the long lead times required to bring advanced memory manufacturing capacity online.
Micron already produces most of its flash memory chips in Singapore, making the country a central pillar of its global industrial strategy.
Along with the NAND expansion, Micron is also building a $7 billion advanced packaging plant at the same site to support high-bandwidth memory production. This facility is expected to begin contributing to the supply in 2027.
However, analysts expect tight memory supply conditions to persist through the end of 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 in several categories of memory, including those used in consumer electronics and enterprise storage.
Micron’s competitors are also accelerating their capacity plans. Both Samsung and SK Hynix revealed their efforts to bring new production lines online ahead of schedule.
Micron is also exploring other expansion options, including negotiations to acquire a manufacturing site in Taiwan that could increase DRAM wafer production.
The expanded Singapore complex is expected to create around 1,600 jobs related to NAND manufacturing, following earlier hiring related to the high-bandwidth memory factory.
Micron said the facility would integrate automation, robotics and smart manufacturing systems.
The Singapore government welcomed the investment as strengthening its role in the global semiconductor supply chain.
Although Micron’s investment demonstrates confidence in long-term demand, the late start of production raises questions about how much relief it can provide in the short term.
The scale of the industry-wide shortages suggests that no single facility, even of this size, is likely to resolve supply constraints on its own.
Via Nikkei Asia
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