Micron Technology to Invest $7 Billion in Singapore Chip Factory

Investing.com -- Micron Technology Inc. plans to invest $7 billion to expand its manufacturing capacity in Singapore over the coming years. This investment comes amid rising demand for advanced memory chips alongside the rise of artificial intelligence.

The U.S. company began construction of a new facility in Singapore on Wednesday. The facility is expected to be operational by 2026 and will be used for the packaging of high-bandwidth memory chips typically utilized in AI data centers. The expansion is expected to create approximately 1,400 job opportunities.

Micron is among many tech firms and chip manufacturers focusing on Southeast Asia. These companies are exploring new markets and expanding operations beyond China and Taiwan to minimize exposure to ongoing tensions between Washington and Beijing.

Other firms, supported by players in the industry such as NXP Semiconductors NV and Taiwan Semiconductor Manufacturing Co., are constructing a $7.8 billion wafer facility in Singapore.

In its announcement, Micron stated that the new facility would enhance Singapore's local semiconductor ecosystem and promote innovation. The company also noted that its future expansion plans in Singapore would support long-term manufacturing needs for NAND semiconductors. These chips are used to store information in a variety of devices, from data center computers to smartphones.