2026-01-27 01:54:00
Micron is poised to expand memory chip production in Singapore as global shortages intensify amid surging AI-driven demand.
Summary:
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Micron plans new memory chip investment in Singapore
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Expansion driven by global memory shortage and AI demand
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Singapore already produces most of Micron’s flash memory
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Rivals Samsung and SK Hynix also accelerating capacity
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Supply shortfall may persist through late 2027
Micron Technology is set to announce a new memory chip manufacturing investment in Singapore, expanding capacity as global industries grapple with an acute shortage of memory chips, sources familiar with the matter told Reuters.
The investment is expected to be announced as soon as Tuesday, with one source saying it will focus on NAND flash memory. The people declined to be identified as they were not authorised to speak publicly. Micron did not immediately respond to a request for comment.
The expansion comes as demand from consumer electronics makers and artificial intelligence service providers accelerates amid a global race to build AI infrastructure, intensifying shortages across memory chip types.
Singapore already plays a critical role in Micron’s global footprint, accounting for about 98% of its flash memory chip production. The company is also constructing a US$7 billion advanced packaging facility in the city-state to support high-bandwidth memory used in AI chips, with production slated to begin in 2027.
Micron’s move follows similar capacity expansions by rivals including Samsung Electronics and SK Hynix, which have announced new production lines and accelerated plant start dates. Even so, analysts warn that the global memory supply shortfall could persist through late 2027.
Last week, Micron said it was in talks to acquire a fabrication site in Taiwan from Powerchip Semiconductor Manufacturing for US$1.8 billion in cash, a move aimed at boosting its DRAM wafer output. SK Hynix has also said it plans to bring forward the opening of a new factory and start operating another new plant as early as February.
