Micron Technology Inc. intends to invest $7 billion to expand its manufacturing footprint in Singapore over the next few years.
The mentioned plans of the specified company, based in Boise, Idaho, are directly related to the current configuration of reality in the space of the global technology sector, in which, against the background of the so-called artificial intelligence boom, there is a tendency of growing consumer demand for advanced memory chips.
On Wednesday, January 8, Micron broke ground on a new facility in Singapore. The company stated that the launch of the operation of this production site is expected next year. High-bandwidth memory chip packaging activities will be carried out at the mentioned factory. The mentioned microcircuits are currently actively used in artificial intelligence data centers. It is also expected that the operation of the new plant will contribute to the creation of about 1,400 jobs in Singapore.
Micron, which is one of the largest US chip manufacturers, is on the list of technology companies that rely on Southeast Asia as part of their strategic planning. Also, these firms are currently interested in finding new markets. Moreover, technology companies are seeking to diversify their activities, including manufacturing, beyond China. The corresponding aspiration is a reflection of the current state of affairs in the space of geopolitical relations. In this case, it implies a consistent escalation of tension between Washington and Beijing. As part of the relevant situation, the United States has restricted the export of advanced chips and equipment for the manufacture of microcircuits of the appropriate category to China. Against this background, technology companies are striving to diversify their activities. The firms are reducing the scale of their presence in China, but at the same time intend to continue to conduct business, including carrying out production operations, in Asia, which is considered by many experts as a space of significant opportunities.
Micron said the launch of the new plant will help strengthen Singapore’s semiconductor ecosystem.
As we have reported earlier, Micron Shares Fall.
