Micron Technology (MU) announced a $24 billion investment in Singapore over the next decade to ramp up production of its NAND memory chips. This move addresses a global memory chip shortage driven by explosive AI demand, as hyperscalers like Microsoft (MSFT) and Google (GOOGL) are snapping up high-bandwidth memory (HBM) and NAND for data centers and GPUs, leaving sectors like consumer electronics and software lagging.
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The news follows Nvidia’s (NVDA) decision to source high-bandwidth memory chips, called HBM4, from rival Samsung (SSNLF). MU stock fell 2.6% yesterday after Nvidia’s announcement. As one of the top three players alongside Samsung and SK Hynix, Micron seeks to fortify its supply chain and capture a larger share of the multi-trillion-dollar market.
How the New Facility Will Benefit Micron
In a press release, Micron stated that wafer production at the new site is slated to begin in the second half of 2028 in a cleanroom spanning more than 700,000 square feet (65,000 square meters). NAND flash memory powers high-speed SSDs, offering far faster data access than traditional hard disk drives. Its demand has surged alongside the rapid expansion of AI infrastructure.
Singapore already handles about 98% of Micron’s flash memory chip production. The company has strategically concentrated investments in the country, including a $7 billion advanced packaging plant nearby. The facility will produce HBM necessary for AI chips, with output ramping up in 2027. These moves underscore Micron’s strategy to capture AI-driven demand while leveraging Singapore’s efficient ecosystem and scale.
Micron Aids in Job Creation
Micron’s investment in the advanced wafer fabrication facility promises to generate approximately 1,600 jobs. When combined with the 1,400 jobs from the previously announced HBM advanced packaging facility, the company’s overall expansion will create around 3,000 new positions. These roles will center on fab engineering and operations, incorporating AI, advanced robotics, and smart manufacturing to boost efficiency and drive innovation.
Is Micron a Good Stock to Buy?
Analysts remain highly optimistic about Micron’s long-term outlook. On TipRanks, Micron stock has a Strong Buy consensus rating based on 26 Buys and two Hold ratings. The average Micron price target of $377.81 implies 2.9% downside potential from current levels. Over the past year, MU shares have skyrocketed more than 327%.
