Micron Bets $24 Billion On Memory Expansion As AI Driven Demand Lifts Shares
The US memory chipmaker will build a new advanced fabrication facility in Singapore, signalling confidence in sustained AI and data centre driven demand amid tightening global memory supply.
Micron Technology has announced plans to invest approximately $24 billion to expand its memory chip manufacturing capacity, signalling strong confidence in sustained demand driven by artificial intelligence and data centre workloads. The announcement pushed Micron’s shares higher, reflecting investor optimism around tightening memory markets and long term growth prospects.
The investment will support the construction of a new advanced memory fabrication facility in Singapore, with production expected to begin in the second half of 2028. The expansion forms part of Micron’s broader multi year strategy to increase output of NAND flash and high performance memory products, particularly those used in AI servers and cloud infrastructure.
Micron said demand for advanced memory has accelerated as customers scale infrastructure to support generative AI, machine learning and high performance computing applications. Memory components have emerged as a critical constraint in AI system deployment, driving tighter supply conditions across global markets.
The company’s expansion comes amid rising competition with major memory suppliers such as Samsung Electronics and SK Hynix, both of which are also investing heavily in high bandwidth memory and advanced packaging. However, analysts note that long lead times for new fabs mean supply is likely to remain constrained in the near to medium term, supporting pricing power for established producers.
Market reaction to the announcement was positive, with Micron’s stock rising as investors priced in stronger earnings visibility tied to AI driven memory demand. The move also reinforces a broader industry trend of semiconductor companies committing large scale capital expenditure to address structural shifts in computing workloads.
Micron’s Singapore investment complements its ongoing capacity expansions in the United States and Asia, positioning the company to play a central role in the evolving AI hardware ecosystem. As AI adoption deepens across industries, memory is expected to remain a strategic growth lever within the global semiconductor value chain.
