How Singapore generates nearly a third of US chipmaker Micron’s revenue

But NAND, which is widely used in electronics such as mobile devices, is also playing a role in the AI ​​boom, says Chen Kok Sing, country manager for Micron in Singapore.

Nearly all of Micron Technology’s NAND memory is made in Singapore. NAND contributed $2.1 billion to Micron’s revenue in the most recent quarter, accounting for 30% of revenue.

“AI generates a lot of information data, and all of that needs to be stored. NAND then comes into play when it comes to storage capabilities,” Chen says.

Micron’s Singapore products are used in data centers and “intelligent edge” products such as smart home systems, Chen said. In its June earnings presentation, Micron predicted near-term industry growth for both DRAM and NAND would be in the mid-teens.

Singapore also benefits from Micron: its presence gives the Southeast Asian country its footprint in the AI ​​chip market. According to HSBC, Micron helps Singapore gain a 10% share of the high-end global memory market.

Why is Micron Technology in Singapore?

Micron has had a presence in Singapore since 1998, when it acquired the global memory division of Texas Instruments. (Texas Instruments began operations in Singapore in 1969.)

Since then, Micron’s footprint has grown from two manufacturing sites and an assembly and test site to four wafer fabs and more advanced automated test facilities. Approximately 9,000 employees work at Micron’s sites in Singapore.

“The Micron Singapore factory plays a very crucial role in our global leadership strategy,” said Chen.

Micron’s Singapore facility is also its NAND center of excellence, combining technology development, product engineering and manufacturing.

Thanks to Micron Singapore

Chen, who joined Micron straight out of college, says Micron’s success in Singapore is due to the city’s talent ecosystem. Chen points to Singapore’s universities and polytechnics as a major source of STEM talent, with electrical engineering students spending time as interns at the company.

Why memory is important

“All of this memory, whether it’s DRAM or NAND, is used in every device,” Chen says. “Mobile phones, data centers, solid state drives, the Internet of Things, a lot of these things require data to be manipulated and stored.”

Micron also produces high-bandwidth-memory (HBM) chips, which are used in the graphics processing units that are now powering AI applications. Micron’s HBM production is located in three regions, with design and process development in the U.S., memory fabrication in Japan, and advanced packaging and testing in Taiwan. DRAM chips, including HBM, generated nearly 70% of Micron’s revenue in the most recent quarter.

Samsung, SK Hynix and Micron are the largest companies in the memory chip sector. Shares in Idaho-headquartered Micron have risen about 30% so far this year on rising demand for memory chips.

Singapore’s technology and AI push

While Singapore hasn’t announced blockbuster chip subsidies like the US, Europe or India, it can count on something else: decades of experience in the semiconductor sector. Chipmaking accounts for 40% of the value added in Singapore’s manufacturing sector. Manufacturing accounts for about 20% of the country’s GDP.

Micron’s Singapore facility is the only one in the country producing advanced NAND technology.

But beyond the cutting edge, Singapore also produces mature chips, with manufacturers like United Microelectronics Corporation and GlobalFoundries announcing multibillion-dollar investments on the island in recent years. Companies that already have operations in Singapore find it easier to expand than to set up an entirely new operation in another location.

Dutch bank ING predicts that demand for AI chips will remain high until at least 2025, which could further boost profits for chipmakers such as Micron.

After investing more than $30 billion in its Singapore operations over two decades, is the chipmaker open to more investment? “We are always looking for additional opportunities, given the right time and space,” Chen says.

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