SINGAPORE, Jan 27, 2026 (BSS/AFP) - US chip firm Micron said Tuesday it was building a $24 billion plant in Singapore to help meet soaring AI-driven demand that has caused a global shortage of memory components.

Artificial intelligence data centres worldwide are hoovering up the memory chips used in consumer electronics -- a crunch threatening higher prices for phones, laptops and other devices.

Micron said it had broken ground Tuesday on an "advanced wafer fabrication facility located within the company's existing NAND manufacturing complex in Singapore".

NAND storage components power everyday gadgets but are also needed to help process the vast amounts of data crunched by generative AI.

"This new facility represents a planned investment of approximately US$24 billion (SG$31 billion) over 10 years" with output scheduled for the second half of calendar 2028, Micron said.

It said the plant would "address growing market demand for NAND technology driven by the rapid expansion of AI and data-centric applications".

In 2026, supply chain pressure for memory chips "will be far greater than this year", Lu Weibing, president of Chinese electronics giant Xiaomi, said in November.

"Everyone will likely observe that retail prices for products will see a significant increase," he warned.

Singapore said Saturday it would invest around US$785 million in public research on AI through 2030 to enhance its global competitiveness.