Micron breaks ground on $24B Singapore AI memory facility
Wafer fab creating 1,600 jobs marks bold bet on NAND demand as AI accelerates memory shortage
Micron Technology broke ground Tuesday on a $24 billion advanced wafer fabrication facility in Singapore, marking one of the largest semiconductor investments in the city-state's history as the chipmaker doubles down on artificial intelligence infrastructure.
The new fab, which will ultimately provide 700,000 square feet of cleanroom space, represents the centerpiece of Micron's strategy to capture what analysts describe as an unprecedented surge in AI-driven memory demand. Production is scheduled to begin in the second half of 2028, with the investment spread across 10 years. The facility will create approximately 1,600 new jobs focused on fab engineering and operations, integrating AI, advanced robotics, and smart manufacturing technologies.
The move comes as Micron's stock has undergone a remarkable transformation, surging 244% in 2025 and posting a 77% gain after its December earnings beat. The company reported fiscal fourth-quarter earnings per share of $4.78, well above analyst expectations of $3.77, with revenue of $13.64 billion surpassing estimates of $12.62 billion. Analysts have responded with overwhelming optimism, with 35 of 41 analysts rating the stock a buy or strong buy and an average price target of $354.21, according to market data.
Micron's Singapore investment stands in sharp contrast to the strategies of its primary competitors. While Samsung Electronics and SK Hynix have reduced NAND wafer output in 2025—lowering production to 4.68 million and 1.7 million wafers respectively—Micron is aggressively expanding capacity. Samsung and SK Hynix have prioritized high-bandwidth memory (HBM) production for AI training workloads, with SK Hynix holding a dominant 57% market share in HBM and selling out all its 2026 production.
"Micron is making a distinct and aggressive long-term bet on advanced NAND technology becoming a critical component in the evolving AI infrastructure," industry analysts noted, pointing to the company's development of High-Bandwidth Flash (HBF) technology. This approach aims to address enterprise SSD bandwidth bottlenecks that constrain next-generation AI computing, aligning with Nvidia's roadmap for Integrated Compute Memory Storage (ICMS) architecture.
The strategic timing appears optimal. The global memory chip market is facing a severe shortage expected to persist through 2027, driven primarily by AI data center expansion. NAND flash prices have surged an estimated 100% in 2025 alone, as manufacturers reallocate capacity toward higher-margin AI applications. The shortage reflects a fundamental shift in how AI infrastructure is being built—requiring vast quantities of both HBM for training and specialized NAND for inference workloads and storage.
Singapore's Economic Development Board highlighted the investment's significance for the city-state's manufacturing ecosystem. The facility will be Singapore's first double-story wafer manufacturing fab and become an integral part of Micron's NAND Center of Excellence. Co-locating research and development with manufacturing is expected to improve efficiencies, accelerate time-to-market, and deepen research partnerships, according to the company's announcement.
The new fab adds to Micron's growing Singapore presence. Combined with a previously announced HBM advanced packaging facility that will create 1,400 jobs, the company's expansion will support approximately 3,000 new positions in the country. This investment underscores Micron's commitment to enhancing supply chain resiliency and positioning itself as a critical supplier in the AI infrastructure build-out.
Analysts at several investment banks have emphasized the facility's importance for Micron's competitive positioning. While Samsung maintained a 29.1% NAND market share in the third quarter of 2025 and SK Hynix held 19.2%, Micron's 12.2% share belies its outsized influence in advanced NAND segments. The Singapore facility, focusing on next-generation technology rather than commodity memory, could enable Micron to capture higher margins even with a smaller overall market presence.
The investment also reflects a broader trend of semiconductor companies diversifying manufacturing geographically amid ongoing geopolitical tensions. As the United States implements export restrictions on advanced chips to China, companies are building capacity in friendly nations to secure supply chains. Singapore, with its established semiconductor ecosystem and strong intellectual property protections, has emerged as a key beneficiary of this trend.
Looking ahead, investors will be watching several key milestones. Construction progress at the Singapore facility will serve as a bellwether for Micron's execution capabilities. The company's ability to ramp HBF technology and secure design wins for next-generation AI systems will determine whether the $24 billion bet generates appropriate returns. Additionally, NAND pricing dynamics through 2027 will significantly impact the facility's profitability profile.
For now, Micron's aggressive investment stance signals confidence that the AI boom will drive sustained demand for advanced memory solutions. While competitors chase immediate HBM profits, Micron is positioning itself for the next phase of AI infrastructure evolution—where bandwidth, density, and storage capabilities become equally critical to training performance.