Micron Technology on Tuesday pledged to invest about $24 billion to expand its wafer manufacturing operations in Singapore, as the U.S. memory chip maker ramps up production amid a global memory shortage.

In the press release, Micron said the investment will add 700,000 square feet of clean room space – highly controlled manufacturing areas designed to prevent contamination – to the existing NAND manufacturing complex.

NAND, a type of memory chip widely used in personal computers, servers and smartphones, is expected to begin production in the second half of 2028.

Demand for NAND technology has surged in recent months, driven by the rapid expansion of artificial intelligence and data-centric applications.

In response to the shortage, Micron and its memory rivals, including Samsung Electronics and SK Hynix, have been increasing production.

Micron has a manufacturing facility in Singapore as part of its wider Asian production network, which also includes factories in China, Taiwan, Japan and Malaysia.

The company is also building a $7 billion The advanced packaging facility in Singapore produces high-bandwidth memory, a type of dynamic random access memory (DRAM) used in artificial intelligence applications.

Micron and other memory makers have prioritized high-bandwidth memory production, leading to shortages of other types of memory chips. These shortages are expected to last until the end of 2027, According to some estimates.

Micron said its high-bandwidth memory fab, also located in the same Singapore manufacturing facility, is expected to meaningfully contribute to its HBM supply in 2027.

“As HBM becomes part of Micron’s manufacturing operations in Singapore, the company anticipates opportunities to realize synergies between NAND and DRAM production,” the company said in a press release.

Micron added that it plans to manage the pace of capacity expansion at new plants based on market demand.

The newly announced NAND expansion plan will create approximately 1,600 jobs in fab engineering and operations, integrating artificial intelligence, robotics and smart manufacturing. Prior to this, we created approximately 1,400 new jobs related to high-bandwidth memory fabs.

“Micron Technology’s latest expansion will strengthen our semiconductor ecosystem and further solidify Singapore’s position as a key node in the global semiconductor supply chain,” said Jermaine Loy, managing director of the Singapore Economic Development Board, which encourages local semiconductor manufacturing through various incentives and policies.

After the news was announced, Micron Technology shares rose more than 3% in overnight trading on Robinhood.