Micron Invests $24 Billion in Singapore Factory, But Your RAM Sticks Are Not in the Plan

marsbitPubblicato 2026-01-27Pubblicato ultima volta 2026-01-27

Introduzione

Micron announces a $24 billion investment to build an advanced NAND wafer fabrication plant in Singapore, with production starting in late 2028. This follows a previous $7 billion investment in a high-bandwidth memory (HBM) advanced packaging facility at the same site, bringing total new investments in Singapore to over $30 billion. The move comes as Micron shifts its focus toward AI-driven demand and away from consumer products, having recently discontinued its Crucial consumer brand, which sold retail memory modules and SSDs. The strategic pivot is driven by surging demand from AI and data centers. Micron’s HBM revenue reached $1.98 billion in Q3 FY2025, with full-year 2026 HBM supply already sold out. The company predicts the HBM market will grow to around $100 billion by 2028, surpassing the entire DRAM market of 2024. In contrast, consumer memory market is lower-margin and highly competitive. This supply shift has contributed to significant price increases in consumer memory products, with DDR4 and DDR5 spot prices rising over 150% and 300% respectively in 2025. Although Samsung and SK Hynix have extended DDR4 production in response to soaring prices, overall supply remains tight. As AI continues to drive memory demand, consumer memory costs are expected to stay elevated.

Author: David, Shenchao TechFlow

At this time last year, a 16GB DDR4 RAM stick cost just over 200 RMB. Now, the same model is priced at 600 RMB, with some models even approaching 700 RMB.

The direct reason for the price increase is a tightening of supply. The three major memory giants have collectively shifted their production capacity towards the AI market. And Micron is the latest to lay its cards on the table.

On January 27, Micron Technology announced a $24 billion (approximately S$31 billion) investment to build an advanced NAND (flash memory) wafer fabrication plant in Singapore. The investment will be phased over 10 years, with shipments starting in the second half of 2028. Singapore's Deputy Prime Minister Gan Kim Yong attended the groundbreaking ceremony.

This is Micron's second major investment in Singapore.

In January 2025, Micron had already begun construction on a $7 billion HBM (High Bandwidth Memory) advanced packaging facility within the same campus, scheduled for production in 2027. Combined, these two projects represent over $30 billion in new investments by Micron in Singapore.

Image source: Lianhe Zaobao, photo by Tang Jiahong

Yet, this is the same company that just two months ago announced the shutdown of its 29-year-old Crucial consumer brand—the memory sticks and solid-state drives you can buy on JD.com and Taobao.

On one hand, spending billions to build factories; on the other, cutting the consumer business. Both point to the same clue: the demand for memory from AI remains high.

Capacity Reallocation After China Market Contraction

Micron's increased investment in Singapore has a clear geopolitical background.

In May 2023, China's Cyberspace Administration announced that Micron's products had not passed the cybersecurity review and required domestic critical information infrastructure operators to stop procurement. In 2018, the Chinese mainland market contributed 58% of Micron's revenue (approximately $17.36 billion); by fiscal year 2022, this had fallen to 10.8% (approximately $3.31 billion).

Production capacity needs a new outlet.

Currently, Micron already has three 3D NAND fabrication plants and several packaging and testing facilities in Singapore, employing about 9,000 people and producing 98% of Micron's flash memory chips.

Micron stated in its latest announcement that the HBM factory is expected to make a significant contribution to supply by 2027 and mentioned that as HBM becomes part of the Singapore manufacturing operations, "synergistic effects" in both NAND and DRAM (Dynamic Random-Access Memory, the common memory chips) production are anticipated.

But the priority of this "synergy" is clear: HBM capacity for 2026 is completely sold out, data center customer demand cannot be fully met, and the consumer brand is being shut down simultaneously.

Within the same campus, consumer-grade production lines are making way for AI production lines.

The Business Logic of Exiting the Consumer Market

On December 3, 2025, Micron announced via its official website a complete exit from the Crucial consumer business, including the sales of RAM sticks and SSD (Solid State Drive) products through global retailers, e-commerce platforms, and distributors.

Shipments will continue until the end of February 2026, at which point this brand, founded in 1996, will bid farewell to the retail market.

In the statement, Micron's Executive Vice President, Sadana, stated that the surge in memory and storage demand driven by AI in data centers prompted Micron to make the "difficult decision" to exit the Crucial consumer business in order to more effectively supply and support large strategic customers in high-growth areas.

Data supports this judgment.

Micron's fiscal year 2025 third-quarter HBM product income reached $1.98 billion, with an annualized revenue close to $8 billion. According to TrendForce data, the unit price of HBM memory required for AI servers is about 8 times that of ordinary servers.

Micron predicts the HBM market size will grow from approximately $35 billion in 2025 to about $100 billion in 2028, by which time it will exceed the size of the entire DRAM market in 2024.

In contrast, consumer-grade storage is a business with thin profits and fierce competition.

Micron's exit means the world's major consumer DRAM manufacturers are reduced from three—Samsung, SK Hynix, Micron—to two.

The AI Rally of Memory Stocks

The capital market has already priced in this shift.

According to statistics from *National Business Daily*, memory stocks occupied the top four spots on the U.S. stock gainers list for the full year 2025:

SanDisk rose 577%, becoming the S&P 500's top performer for the year; Western Digital rose 281%; Micron rose 236%; Seagate rose 216%.

For comparison, Nvidia rose 39% in the same period, ranking 71st.

It was reported that tech giants like Google and Amazon presented Micron with "unlimited purchase demands" in October 2025. Micron CEO Mehrotra revealed on an earnings call that the company's entire HBM supply for 2026 is already sold out, and currently, it can only meet half to two-thirds of the demand from key customers.

Micron's latest financial report shows revenue of $13.6 billion for September-November 2025, a year-on-year increase of 57%, with DRAM revenue of $10.8 billion, up 69% year-on-year.

Consumer Side: Price Hikes May Continue

Samsung, SK Hynix, and Micron had all previously announced plans to gradually phase out DDR4 production from late 2025 to early 2026. Micron issued an end-of-life notice for DDR4/LPDDR4 in June.

Although Samsung and SK Hynix later extended their DDR4 production plans to the end of 2026 due to soaring DDR4 prices, the overall trend of tightening supply remains unchanged.

The price reaction has been intense. According to TrendForce data, since 2025, the spot price of DDR5 memory chips has risen over 300%, while DDR4 has risen over 150%. DDR4 has even seen a "price inversion," with the price of some specifications exceeding that of DDR5.

ADATA Chairman Chen Libai also publicly stated that the comprehensive shortage and price increase across the four major storage categories—DRAM, NAND, SSD, HDD—is a situation he is witnessing for the first time in over thirty years in the industry.

If you want to add memory to your old computer or build a new desktop, the cost remains high. Because AI needs computing power, and computing power needs memory. Your old computer is probably still behind AI demand in the queue.

Memory stocks have risen, and memory stick prices have risen too.

One is an investment opportunity; the other is paying the bill for that opportunity.

Domande pertinenti

QWhy did Micron announce the closure of its Crucial consumer brand?

AMicron closed its Crucial consumer brand to reallocate resources and supply to meet the surging demand for memory and storage from data centers and large strategic customers driven by AI, as the consumer market is less profitable and highly competitive.

QWhat is the total investment Micron is making in Singapore for new manufacturing facilities?

AMicron is investing a total of over $30 billion in Singapore, including $24 billion for a new NAND wafer fab and over $7 billion for an HBM advanced packaging plant.

QHow has the price of consumer memory modules changed recently according to the article?

AThe price of a 16GB DDR4 memory module has increased from over 200 yuan to about 600 yuan, with some models nearing 700 yuan, due to tightened supply and shifted production focus to AI.

QWhat percentage of Micron's revenue came from the Chinese market in 2022 compared to 2018?

AIn 2018, the Chinese market contributed 58% of Micron's revenue, but by the 2022 fiscal year, it had decreased to 10.8%.

QWhich storage-related stocks were the top performers in the U.S. stock market in 2025 according to the article?

AIn 2025, the top-performing U.S. storage stocks were SanDisk (up 577%), Western Digital (up 281%), Micron (up 236%), and Seagate (up 216%).

Letture associate

The AI Investment Landscape Is Being Reshaped: Beyond the 'Magnificent Seven', What Opportunities Lie in the Semiconductor Supply Chain?

AI Investment Map is Reshaping: Opportunities Beyond the 'Magnificent Seven' Since ChatGPT ignited the AI wave, investment initially focused on the "Magnificent Seven" tech giants dominating cloud infrastructure. However, the rise of DeepSeek and debates on AI capital expenditure effectiveness are shifting this dynamic. Investors now recognize opportunities deeper in the supply chain—the companies providing the essential "picks and shovels." Early concerns about an AI investment "arms race" and potential low returns were partly alleviated by strong Q1 earnings from cloud providers, validating robust compute demand. This has highlighted a more certain investment thesis: regardless of which AI applications ultimately win, massive capital expenditure will first fuel demand for semiconductors and related components. This "pick-and-shovel" logic has driven semiconductor ETFs to record highs. Key beneficiaries include: * **Memory Chipmakers (e.g., SK Hynix, Samsung, Micron)**: High Bandwidth Memory (HBM) is a critical bottleneck for AI training. * **Photonics Companies**: Crucial for high-speed data transfer within AI data centers. * **The Broader "AI-11" Semiconductor Ecosystem**: This encompasses foundries & lithography (TSMC, ASML), logic & custom chips (AMD, Broadcom, Intel, Marvell), and enterprise storage (SanDisk, Western Digital). Every dollar of AI infrastructure spending flows through this chain. While the "Magnificent Seven" remain dominant in market size, their earnings growth premium over the rest of the S&P 500 ("S&P 493") is narrowing. Market attention and marginal investment are shifting towards the expanding semiconductor supply chain. The investment narrative is evolving from "betting on the ultimate AI winner" to "investing in the certainty of the infrastructure build-out." Understanding this shift from the demand side to the supply side is key to identifying future AI investment opportunities.

marsbit18 min fa

The AI Investment Landscape Is Being Reshaped: Beyond the 'Magnificent Seven', What Opportunities Lie in the Semiconductor Supply Chain?

marsbit18 min fa

As Circle, the First Stablecoin Stock, Resolves to Shed Its Label

Circle, the "stablecoin stock," reported its Q1 2026 results, showing a 20% YoY revenue increase to $694M despite a 15% drop in net profit due to post-IPO stock-based compensation and operational investments. The company's USDC stablecoin hit a record $770B in circulation with on-chain transaction volume soaring 263% YoY. However, market share slightly declined amid competition. The key market catalyst was the announcement of a $222M pre-sale for the ARC token of Circle's new institutional-focused Layer 1 blockchain, Arc, valuing the network at $30B. Led by a16z, the round included major investors like BlackRock and Apollo. CEO Jeremy Allaire positioned this as a strategic pivot from a stablecoin issuer to a broader internet platform and "financial OS" company. Circle also launched "Agent Stack" products for AI agent payments using USDC. While reaffirming its full-year 2026 guidance, the company noted the financial impact of Arc is not yet included, leaving room for future upside. Following the report, CRCL's stock surged nearly 16%. Wall Street analysts remain largely bullish on the long-term narrative, though some caution about near-term execution risks and the current immaterial contribution of new initiatives like Arc. The focus is now on Arc's mainnet launch, ARC token adoption, and evolving U.S. crypto regulation.

链捕手35 min fa

As Circle, the First Stablecoin Stock, Resolves to Shed Its Label

链捕手35 min fa

600 People, $66 Billion: The First Major Cash-Out in the Era of Large Models

The first systematic "big cash-out" of the AI era occurred in October 2025, when over 600 current and former OpenAI employees sold a total of $6.6 billion in shares via a secondary market. Approximately 75 individuals maxed out a $30 million per-person sale limit, while around 525 others cashed out an average of $8.3 million each. This event, exceeding the scale of any 2024 US IPO, functioned as a "shadow IPO." It marked a radical departure from the traditional Silicon Valley path of waiting for a public listing, instead allowing employees to convert equity to cash after just two years of tenure—a direct retention tool in a fiercely competitive talent market where rivals like Meta have offered packages worth hundreds of millions. This massive liquidity event presents a dual-edged sword for OpenAI. While it helps retain talent, it also risks triggering a brain drain as newly wealthy employees may depart. Furthermore, it creates a dilemma for those who sold: they forfeited potential future gains as the company's valuation soared from $400 billion to $852 billion within months. In stark contrast, employees at rival Anthropic demonstrated greater reluctance to sell during their own secondary offering. The financial narratives of the two labs also diverge sharply. OpenAI, while achieving over $20 billion in annualized revenue by 2025, faces massive projected losses (up to $14 billion in 2026), a long path to cash flow positivity, and significant revenue-sharing payments to Microsoft. Anthropic reports rapid revenue growth, improving gross margins, and a faster path to profitability. OpenAI's trajectory is thus balanced precariously between skyrocketing valuation based on funding narratives and the pressures of sustained financial losses post-cash-out. The event underscores that the AI race has evolved into a capital and human experiment, where immense wealth crystallizes the complex calculations of greed, fear, and ambition within the industry.

marsbit37 min fa

600 People, $66 Billion: The First Major Cash-Out in the Era of Large Models

marsbit37 min fa

NVIDIA Begins Adding Soap to the Bubble

NVIDIA is taking on a dual role: not just as a leading chip supplier, but as a massive capital allocator across the entire AI supply chain. In 2026, the company has committed over $40 billion in investments within five months, targeting everything from optical fiber manufacturing and data center operations to foundational AI model development. This investment spree, described as a systematic "sprinkler" approach, primarily funds companies that are major buyers of NVIDIA's own GPUs. Critics, including analysts from Goldman Sachs, label this a "circular revenue" loop—comparable to a supplier financing a customer to buy more of its products. A prominent example is NVIDIA's investment in OpenAI, which is expected to generate around $13 billion in revenue for NVIDIA, much of which may be reinvested back into OpenAI. While CEO Jensen Huang dismisses the "circular financing" critique as "absurd," arguing the investments are confidence votes in long-term generational shifts, some analysts express discomfort. They note that while investments in critical supply chain components like optics are strategically sound, funding new cloud providers like CoreWeave feels like "pre-paying for your own GPUs." The strategy carries significant risks. If the AI investment cycle turns, the market may question how much demand is genuine versus artificially sustained by NVIDIA's own balance sheet. Despite posting record-breaking earnings—$215.9 billion in annual revenue and $120 billion in net profit for FY2026—NVIDIA's stock fell after its report, signaling that "beating expectations" may no longer be enough to assure investors about the duration of the AI spending boom. The article concludes that while a bubble isn't necessarily a fraud, NVIDIA's actions resemble adding soap to a bubble—making it appear more robust and durable. This creates a complex scenario requiring extreme冷静 from investors to distinguish between real structural growth and financial engineering.

marsbit54 min fa

marsbit54 min fa

Short Positions Have Been Squeezed Out: Will the Next Leg of the U.S. Stock AI Rally Continue in Seoul?

"Short Squeeze Exhausted: Will the Next Leg of the AI Rally Continue in Seoul?" A Nomura report suggests the US AI stock rally, which saw the S&P 500 rise ~16.6% in 28 days largely driven by 10 key stocks, may be pausing. The fuel from short covering, CTA fund positioning, and volatility-control strategies is nearing its limit. For the rally to continue, new momentum from retail and sentiment-driven FOMO (Fear Of Missing Out) is needed. South Korea's market provided a potential answer on the very day the report was published. The KOSPI index surged 4.32%, triggering a buy-side circuit breaker, led by massive gains in chip giants SK Hynix (+11.98%) and Samsung. This surge is characterized by retail "hynix FOMO" and overseas funds precisely buying into AI themes via chip-focused ETFs, shifting from broad Korean market ETFs. The Korean rally is a high-beta extension of the US AI capital expenditure story, as major cloud providers plan massive infrastructure spending, directly benefiting memory chip leaders. However, this linkage also implies vulnerability. The sustainability of this next leg depends on whether US tech stocks correct, the trajectory of US inflation (with upcoming CPI data key), and geopolitical tensions around the Strait of Hormuz. Seoul has emerged as the new epicenter of the AI trade, but its fate remains tied to these broader macro and market dynamics.

marsbit59 min fa

Short Positions Have Been Squeezed Out: Will the Next Leg of the U.S. Stock AI Rally Continue in Seoul?

marsbit59 min fa

Trading

Spot

Futures