Micron's $9.5b chip plant in Woodlands to drive Singapore's AI growth, create up to 3,000 jobs

Singapore can be expected to play a larger role in developing complex artificial intelligence (AI) applications when Micron's new $9.5 billion high bandwidth memory (HBM) advanced packaging facility in Woodlands becomes operational in 2026.

HBM is a type of semiconductor chip typically used in artificial intelligence (AI) chipsets.

Speaking at the ground-breaking ceremony on Wednesday (January 8), Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said that Micron's new investment comes at an inflexion point for the global semiconductor industry. 

"Amidst intensifying geopolitical contestation, semiconductors have been subject to a myriad of trade and investment barriers; these include export controls and outbound investment screening," he added.

"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." 

The market for semiconductors across various applications, such as automotives, communications and computing, is projected to almost double over the course of this decade, to about US$1 trillion by 2030 (about S$1.36 trillion). 

The Singapore Economic Development Board (EDB) said that it is working to bolster Singapore's position in global semiconductor supply chains by continuing to anchor investments from leading global companies, doubling down on research and development (R&D) investments in emerging semiconductor technologies, and expanding the talent pipeline. 

According to the EDB, Singapore now produces one in ten chips and one in five semiconductor equipment units globally.

It added that Singapore has been successful in attracting over $18 billion of R&D and manufacturing investments into our semiconductor ecosystem. 

President and CEO of Micron Technology Sanjay Mehrotra projected that the HBM market will grow dramatically, vaulting from roughly US$4 billion (S$5.5b) in 2023 to more than US$100 billion by 2030. 

He said at the ground-breaking event that this investment will also be a vital engine for innovation in Singapore, strengthening the local semiconductor ecosystem and helping develop talent.

The Woodlands facility will initially generate around 1,400 new jobs, with the potential to increase to 3,000 positions as expansion plans progress. 

"These roles will span packaging development, assembly, and test operations, contributing to the growth and development of Singapore's workforce", said Mehrotra. 

Micron's presence in Singapore began in 1998 with its assembly and test facility in Bendemeer.

Since then, Micron's investments in Singapore have grown to over $40 billion, with more than 9,000 employees across its facilities here.

The new HBM facility in Woodlands is targeted to meet Leadership in Energy and Environmental Design certification requirements. It will incorporate a greenhouse gas abatement system, water recycling system, waste circularity, and AI-powered automation. 

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editor@asiaone.com