Micron Technology (MU.US) has begun construction on its $7bn HBM packaging plant in Singapore.
AInvestThursday, Jan 9, 2025 2:20 am ET
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Micron Technology (MU.US) announced on Wednesday that it will break ground on a new high-bandwidth memory (HBM) advanced packaging plant near its existing factory in Singapore. The US tech giant stated that the plant is planned to start operations in 2026, as it will ramp up its advanced packaging capacity on a large scale from 2027 to meet the growing demand for AI.Singapore Economic Development Board (EDB) chairman Png Cheong Boon said it is the first HBM advanced packaging facility in Singapore.Micron Technology president and CEO Sanjay Mehrotra said: "As AI adoption proliferates across industries, demand for advanced memory and storage solutions will continue to grow robustly. With the continued support of the Singapore government, our investment in this HBM advanced packaging facility strengthens our position to address the ever-expanding AI opportunities."The company noted that its HBM advanced packaging investment is about US$7bn (S$9.5bn) by the end of this decade, initially creating about 1,400 jobs, which is expected to reach 3,000 jobs as the future factory expansion plans progress. The new roles will include packaging development, assembly and testing operations, among others, and the company noted that the facility will strengthen the local semiconductor ecosystem and innovation.In addition, Micron said its future expansion plans in Singapore will also support the long-term manufacturing needs of NAND (a storage technology). Micron added that it will maintain flexibility in managing the growth pace of HBM and NAND facilities to adapt to market demand.The HBM market is dominated by South Korean companies SK Hynertek and Samsung Electronics, with a smaller share for Micron. HBM chips are key components used in graphics processing units (GPUs) for AI applications, which companies such as Nvidia (NVDA.US) are using.Earlier on Wednesday, Samsung announced its preliminary operating profit forecast for the fourth quarter of 2024, which is estimated to be about KRW6.5tn (US$44.7bn), lower than analysts' expectations. However, the company did not provide any update on its latest progress in supplying HBM chips to Nvidia.

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