Stock Markets January 26, 2026

Micron to Expand Memory Production Capacity in Singapore, Sources Say

Move targets NAND flash output as global memory shortage strains consumer electronics and AI infrastructure

By Leila Farooq MU
Micron to Expand Memory Production Capacity in Singapore, Sources Say
MU

Three people familiar with the matter said Micron Technology plans to announce a new investment to expand memory chip manufacturing capacity in Singapore, with the company expected to make the announcement as soon as Tuesday. One source said the investment would target NAND flash memory. The decision comes amid an acute shortage of memory chips affecting consumer electronics and AI service providers. Micron already produces the bulk of its flash memory in Singapore and is building an advanced packaging plant for high bandwidth memory scheduled to begin production in 2027.

Key Points

  • Micron plans to announce new memory manufacturing investment in Singapore as soon as Tuesday, according to three people briefed on the matter.
  • One source said the investment would focus on NAND flash memory; Micron makes roughly 98% of its flash memory chips in Singapore and is building a $7 billion advanced packaging plant for high bandwidth memory due in 2027.
  • The expansion is aimed at alleviating a severe global memory chip shortage that is affecting consumer electronics and AI service providers; competitors are also accelerating capacity additions.

Micron Technology is preparing to disclose a new investment in memory chip production in Singapore, according to three people briefed on the plans. Those people, who asked not to be identified because they were not authorised to speak publicly, said the company could announce the expansion as soon as Tuesday.

One of the sources specified that the planned investment would be directed at NAND flash memory. Micron did not immediately reply to a request for comment on the report.

The announced expansion would be aimed at easing an acute global shortage of memory chips, a shortfall that industries ranging from consumer electronics makers to providers of AI services are confronting as demand for memory rises with a build-out of AI infrastructure.

Singapore already plays a central role in Micron's flash production. The company operates substantial manufacturing capacity in the city-state and is responsible for about 98% of its flash memory output there. In addition, Micron is constructing an advanced packaging facility for high bandwidth memory, which is used in AI chips. That packaging plant carries an estimated price tag of $7 billion and is slated to start production in 2027.

Micron and its principal competitors in the memory market - South Korea's Samsung and SK Hynix - have been adding production lines and in some cases accelerating planned start dates for new capacity. Analysts continue to warn, however, that the supply gap for memory could persist through late 2027.

In related moves, Micron said last week that it was in talks to acquire a fabrication site from Powerchip in Taiwan for $1.8 billion in cash, a purchase it said would increase its DRAM wafer output. Separately, SK Hynix indicated this month that it plans to bring forward the opening of a new factory by three months and to begin operating another new plant in February.

The reported Singapore investment, if confirmed, would represent another step by Micron to expand capacity in response to sustained demand pressure for both flash and dynamic random access memory. For industries dependent on memory supply, the scale and timing of new production remain critical variables as companies plan inventory, product launches, and AI infrastructure rollouts.

Risks

  • Supply shortfall could persist through late 2027, according to analysts, prolonging pressure on consumer electronics and AI infrastructure operators.
  • The report is based on anonymous briefings and Micron had not immediately commented, creating uncertainty around timing and final terms of any announced investment.
  • Even with announced capacity additions and acquisitions, bringing new plants and packaging lines online can take years, leaving short-term demand-supply imbalances for memory devices.

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