SINGAPORE – American tech giant Micron Technology has broken ground for what will be Singapore’s first plant producing advanced semiconductors vital for artificial intelligence (AI) applications.
The US$7 billion (S$9.5 billion) high-bandwidth memory (HBM) packaging facility in Woodlands will initially create around 1,400 new jobs and eventually up to 3,000 positions as expansion plans unfold, said chief executive and president Sanjay Mehrotra.
Operations are scheduled to start in 2026, with the expansion of packaging capacity beginning in 2027. The company already employs around 9,000 people here.
HBM chips are made by stacking several layers of memory chips on top of each other to make one chip that stores more data while speeding up processing and consuming less power.
The chips enable graphics cards and accelerators made by companies like Nvidia and AMD to process generative AI workloads at data centres.
“The demand for AI is surging, and the need for memory and storage has never been more critical,” said Mr Mehrotra at the ground-breaking ceremony on Jan 8.
He added that the HBM market will grow dramatically, from around US$4 billion in 2023 to more than US$100 billion by 2030.
“This robust growth underscores the critical role that advanced memory technologies play in enabling AI,” he said.
Mr Mehrotra added that the HBM investment will also be a vital engine for innovation in Singapore, strengthening the local semiconductor ecosystem and helping develop talent.
Deputy Prime Minister Gan Kim Yong, who is also Minister for Trade and Industry, told the ceremony that Micron’s HBM plant will allow Singapore to establish a foothold in the fast-growing AI space.
“As we chart the next phase of Singapore’s economic development, we look forward to deepening our partnerships with companies such as Micron to grow an innovation-led economy,” he said.
DPM Gan also touched on the trade tensions and technology competition between the world’s two largest economies – the US and China.
“Amid intensifying geopolitical contestation, semiconductors have been subject to a myriad of trade and investment barriers; these include export controls and outbound investment screening,” he said. “Such rules and restrictions have significant implications not only on existing production and supply chains for the semiconductor industry but also future investments, especially in the development of new technologies and innovations.”
However, DPM Gan said Singapore’s value proposition lies in its strong and enduring fundamentals, including a skilled talent pool, innovation and research capabilities, and a pro-business environment.
He noted that Micron has also forged strong partnerships with Singapore’s educational institutions, including the Institute of Technical Education and the five polytechnics.
“These collaborations will not only help Micron build a stronger talent pipeline but also open up more career opportunities for our students across all levels,” he said.
Micron corporate vice-president and Singapore country manager Chen Kok Sing said the company has invested more than US$30 billion, including establishing greenfield chip wafer fabrication sites and expanding facilities, since it set up here in 1998.
Experts see Singapore as a critical node in the semiconductor supply chain, accounting for one in 10 chips and one in five pieces of semiconductor equipment produced globally.
Singapore has attracted around $18 billion of research and development, and manufacturing investments over the past two years, according to the Economic Development Board.
Source: The Starts Times
