U.S. memory chip maker Micron Technology is set to announce a new manufacturing investment in Singapore as early as Tuesday, expanding its production footprint amid a severe global shortage of memory chips, according to three people briefed on the matter. The move underscores mounting pressure on the semiconductor industry as demand from artificial intelligence infrastructure and consumer electronics continues to outstrip supply.
The planned investment is expected to focus on NAND flash memory, one of the people told Reuters. The sources declined to be identified because they were not authorized to speak publicly. Micron did not immediately respond to a request for comment from Reuters.
The expansion comes as chipmakers race to add capacity to address shortages affecting nearly all categories of memory, driven largely by the rapid buildout of data centers and AI services that rely heavily on advanced memory components. Industry analysts warn that despite aggressive investment plans, tight supply conditions could persist until at least late 2027.
Singapore plays a central role in Micron’s global operations. The company already manufactures about 98% of its flash memory chips in the city-state and is in the process of building a $7 billion advanced packaging facility there to produce high-bandwidth memory used in artificial intelligence chips. That plant is expected to begin production in 2027, further cementing Singapore’s importance in the global semiconductor supply chain.
Micron’s rivals are also moving quickly to expand output. South Korea’s Samsung Electronics and SK Hynix have both announced new production lines and accelerated timelines to bring additional capacity online. Earlier this month, SK Hynix told Reuters it plans to speed up the opening of a new factory by three months and begin operating another plant in February, reflecting the urgency felt across the industry.
In parallel, Micron is seeking to bolster its DRAM production. Last week, the company said it was in talks to acquire a fabrication facility in Taiwan from Powerchip for $1.8 billion in cash, a deal that would significantly increase its output of DRAM wafers.
Taken together, the investments highlight how the world’s leading memory manufacturers are scrambling to respond to unprecedented demand fueled by AI, even as analysts caution that the scale and complexity of new facilities mean relief for customers may still be years away, Reuters reported.
