Micron Technology to invest $7 billion in Singapore chip factory

Investing.com -- Micron Technology Inc (NASDAQ:MU ). is planning to invest $7 billion over the coming years to expand its manufacturing capacity in Singapore. The investment comes as the demand for advanced memory chips grows, driven by the rise of artificial intelligence.

On Wednesday, the U.S. company initiated the construction of a new facility in Singapore. The plant is scheduled to become operational in 2026. The facility will be utilized for packaging high-bandwidth memory chips, a type of chip commonly used in AI data centers. The expansion is expected to create approximately 1,400 jobs.

Micron is among a number of technology firms and chipmakers that are turning their focus to Southeast Asia. These companies are exploring new markets and expanding their operations beyond China and Taiwan to minimize their exposure to the ongoing tensions between Washington and Beijing.

Other companies in the sector, such as NXP Semiconductors NV (NASDAQ:NXPI ) and a company supported by Taiwan Semiconductor Manufacturing Co., are constructing a $7.8 billion wafer plant in Singapore.

In a statement, Micron stated that the new facility will enhance Singapore’s local semiconductor ecosystem and promote innovation.

The company also indicated that its future expansion plans in Singapore will support long-term manufacturing needs for NAND semiconductors. These chips are used to store information in a range of devices, from data-center computers to smartphones.

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Source: Investing.com