Micron Technology Inc. (NASDAQ:MU) has begun building a state-of-the-art wafer fabrication plant in Singapore, with plans to invest about $24 billion (SG$31 billion) over the next ten years amid strong AI-driven demand for its memory chips.

Expanding the NAND Center Of Excellence

The new plant, situated within Micron's existing memory chip manufacturing campus in Singapore, will add approximately 700,000 square feet of cleanroom space. Wafer production is slated to begin in the latter half of 2028.

The project is expected to generate approximately 1,600 new jobs, in addition to the 1,400 roles announced earlier for the high-bandwidth memory (HBM) advanced packaging facility, bringing Micron's total planned job creation in Singapore to around 3,000.

Capacity Expansion Amid Memory Chip Shortage

The new facility’s construction comes at a time when Micron is ramping up its efforts to address the global memory chip shortage exacerbated by a surge in AI data center spending, which has significantly increased the demand for memory chips, especially high-bandwidth memory used in AI servers. This trend has led to a shift in the memory supply heavily towards AI workloads, leaving fewer chips available for consumer electronics such as smartphones, PCs, and laptops.

Micron CEO Sanjay Mehrotra emphasized the company’s long-term investment in new capacity to meet the growing demand for memory chips, a process that requires a significant lead time for construction.

In December, the company reported strong Q1 results, with a revenue of $8.27 billion, surpassing the $8.23 billion consensus estimate. The company also provided an upbeat outlook for Q2, expecting a revenue of $8.2 billion, compared to the $7.58 billion consensus estimate.

Benzinga's Edge Rankings place Micron in the 98th percentile for quality and the 99th percentile for momentum, reflecting its strong performance. Benzinga’s screener allows you to compare Micron’s performance with its peers.  

Price Action: Over the past year, Micron stock climbed 327.06%, as per data from Benzinga Pro. On Monday, the stock declined 2.64% to close at $389.09.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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