Micron Technology to build $7 billion advanced chip factory in Singapore as artificial intelligence booms

Micron Technology is investing S$9.5 billion ($7 billion) to build an advanced chip packaging factory in Singapore as the semiconductor giant expands production capacity to meet growing demand for artificial intelligence chips.

The so-called high-bandwidth memory (HBM) fab will be built next to the company's existing plant in Woodlands, northern Singapore, and will begin commercial operations next year and significantly expand Micron's advanced manufacturing capabilities in 2027, the company said in a statement. Wafer manufacturing capabilities.

“As artificial intelligence proliferates across industries, demand for advanced memory and storage solutions will continue to grow strongly,” Sanjay Mehrotra, Micron's president and CEO, said in a statement. “With the continued support of the Singapore government, our commitment to “The investment in HBM’s advanced packaging facilities strengthens our position to address the expanding artificial intelligence opportunities of the future.”

Micron Technology broke ground on Wednesday for a new factory that will be the first of its kind in Singapore. Micron will create an initial 1,400 jobs and up to 3,000 new jobs over the next few years as it further expands its presence in the city-state.

Singapore has been one of the hotbeds of artificial intelligence and data centers in the region. Last year, Alphabet's Google more than quintupled its total investment in the city-state to $5 billion as it expanded its data centers. Meanwhile, Amazon said it would double its total investment commitment in Singapore to US$17 billion as it expands its cloud computing infrastructure.

In addition to its Singapore expansion, Micron Technology has also been expanding its presence in the region. In June 2023, the company announced plans to invest 4.3 billion yuan ($603 million) to build a chip packaging factory in Xi'an, China. In the same month, the company said it would invest $825 million to build a wafer assembly and testing plant in the Indian state of Gujarat.