Micron Technology just placed a $24 billion bet on Singapore, announcing a massive expansion that signals how desperate the memory chip industry has become. The American chipmaker's commitment to add 700,000 square feet of cleanroom space at its existing NAND complex comes as global memory shortages threaten to choke off the AI boom. Production won't start until late 2028, but the investment shows how manufacturers are scrambling to address supply constraints that analysts expect will persist through 2027.
Micron Technology is pouring $24 billion into Singapore, making one of the largest single investments in memory chip manufacturing as the industry races to catch up with AI-fueled demand that's creating shortages across the board.
The Idaho-based chipmaker announced Tuesday it will add 700,000 square feet of cleanroom space to its existing NAND manufacturing complex in Singapore. These highly controlled environments, designed to prevent even microscopic contamination, will start producing NAND flash memory chips in the second half of 2028. The timeline matters - it means relief from current shortages is still years away, even as companies scramble for supply today.
NAND technology, the type of memory chip found in everything from smartphones to data center servers, has seen demand skyrocket in recent months. The culprit? The rapid expansion of AI applications and data-heavy workloads that require massive amounts of storage. According to industry estimates, these shortfalls won't ease until late 2027, creating a pressure cooker situation for tech companies dependent on steady chip supplies.
The announcement puts Micron in direct competition with memory giants Samsung Electronics and SK Hynix, both of which have also been ramping up production. But there's a twist - the industry's pivot to prioritize high-bandwidth memory (HBM) for AI applications has actually contributed to conventional memory chip shortages. It's a classic case of robbing Peter to pay Paul, and the entire tech ecosystem is feeling the pinch.
