The Boise, Idaho-based semiconductor manufacturer will utilize the capital to erect a fresh NAND production plant, the firm conveyed in a declaration.
NAND is superseding hard disk drives (HDDs) by furnishing swifter data retrieval, and its requirement has ballooned as artificial intelligence (AI) infrastructure is developed. NAND is most often traded as solid-state drives (SSDs), which connect into HDD slots in computing devices. Micron shares escalated by over 4% in premarket trading on Tuesday.
The worldwide memory market is governed by Micron and its two South Korean competitors, SK Hynix Inc. and Samsung Electronics Co. All three entities have concentrated on generating premium chips essential for AI infrastructure and have curtailed memory for alternate sectors. Since the prior year, PC and smartphone producers have cautioned about memory chip deficiencies that are impacting their operations.
“Of late, the relevance of NAND for AI has been amplifying, and NAND costs have soared,” articulated MS Hwang, research director at Counterpoint Research. “Vendors are diminishing the yield of conventional consumer items like client SSDs for PCs and flash drives for cellular devices, while augmenting the proportion of enterprise SSDs for data center servers.”
The novel Singapore endeavor will generate approximately 1,600 positions and wafer production is slated to commence in the latter part of 2028, Micron reported on Tuesday. “This investment highlights Micron’s enduring dedication to Singapore as a pivotal center for our worldwide manufacturing framework, bolsters supply chain durability, and cultivates a flourishing innovation environment,” declared Manish Bhatia, the company’s executive vice president of global operations.
To ease what Micron characterizes as an unprecedented supply scarcity, the American enterprise has already initiated construction on a $100 billion complex in New York state and recently unveiled intentions to procure a Taiwanese corporation for $1.8 billion.
At the start of 2025, Micron proclaimed an investment of $7 billion over the subsequent years to broaden its production foundation in Singapore to satisfy the demand for advanced memory chips crucial for artificial intelligence instruction. The American chipmaker conventionally relies on Taiwan, Singapore, and Japan as essential production hubs.
Micron's stake in Singapore is in accordance with the island nation's government's scheme to nurture an extensive spectrum of pioneering sectors, spanning from AI to high-tech chip fabrication. The Singapore government has vowed to contribute upwards of S$1 billion ($786 million) to sustain national AI research.
Source: Bloomberg