Micron's $24B Singapore Fab Sparks MU Rally P5 Buy

Introduction

Over the past week Micron Technology (MU) has moved from earnings strength into an execution phase that directly affects supply capacity for DRAM and NAND. Two high‑visibility moves — the formal groundbreaking of a $24 billion 3D NAND fab in Singapore (Fab 10B) and a $1.8 billion letter of intent to acquire Powerchip’s P5 facility in Taiwan — combined with record quarterly results have driven fresh investor interest. These are concrete, actionable developments with timelines and dollar figures that materially influence Micron’s ability to meet surging demand for AI memory.

Major Capacity Moves and Timelines

Fab 10B: Singapore’s large, long‑lead NAND build

Micron has broken ground on Fab 10B in Singapore — a multibillion‑dollar, multi‑year 3D NAND expansion designed to scale flash output substantially. The plan calls for roughly 700,000 square feet of clean‑room space and advanced 3D NAND stacks (targeting very high layer counts). Micron’s public timeline puts meaningful wafer output beginning in the second half of 2028, with phased construction to match equipment and demand. The capital commitment — reported at about $24 billion over the coming decade — is one of the largest single fab investments in Micron’s history and signals a long‑term push to secure NAND supply for enterprise and AI workloads.

P5 acquisition: accelerating DRAM capacity in Taiwan

Complementing the Singapore build, Micron signed a $1.8 billion Letter of Intent to buy Powerchip’s P5 fab in Taiwan. The site includes a large cleanroom but will require staged equipment installation and qualification. Ownership transfer is expected in 2026 with material DRAM wafer output anticipated by the second half of 2027. This faster path to DRAM capacity helps bridge the gap between near‑term demand and longer lead‑time fab projects.

Financial Results and Market Reaction

Record quarterly results underpin confidence

Micron reported a record quarter with revenue near $13.6 billion and adjusted EPS of $4.78 for the most recent fiscal period. Those results — driven by strong pricing across DRAM and NAND, and outsized demand for high‑bandwidth memory (HBM) — provided the backdrop for the stock’s meaningful gains. Following the combination of earnings and the Singapore announcement, MU shares rose roughly 5% on the day of the Fab 10B news, reflecting investor confidence in both pricing power and capacity planning.

Insider selling amid gains

Notably, Micron’s EVP of Global Operations reported a sale of 26,623 shares valued at more than $10.4 million on January 22, 2026. The company has characterized such transactions as driven in part by vested awards and personal liquidity events; the executive retains a substantial stake. While insider sales warrant investor attention, they have not materially dampened the positive price action tied to Micron’s operational announcements.

Industry Context: AI Demand and Ongoing Tightness

The background to Micron’s moves is a persistent shift in memory demand toward AI infrastructure. Customers deploying large language models and AI accelerators are driving outsized need for DRAM and HBM. Multiple industry reports over the past year indicate sharp price increases for certain memory segments and constrained supply for high‑end parts — dynamics that favor well‑timed capacity expansions and acquisitions that target high‑value product lines.

Micron’s strategy — dual‑tracking long‑lead, large investments (Singapore Fab 10B) and faster, opportunistic capacity lifts (P5 acquisition) — reflects an effort to capture elevated pricing while positioning for longer‑term secular growth in AI memory consumption.

Implications for MU Investors

These are tangible, near‑term items investors can assess: capital commitments with public timelines, an identifiable acquisition price and transfer window, and a recent earnings beat that validates pricing and margin strength. The Singapore project is long‑dated and capital intensive, while the Taiwan acquisition offers earlier contribution to DRAM supply. Together they improve Micron’s ability to meet differentiated demand for HBM and enterprise flash.

Risks remain execution‑focused: delivering on schedule, managing capital intensity, and transitioning equipment and staffing efficiently at acquired facilities. However, the combination of record results and concrete capacity actions provides clear, non‑speculative reasons for MU’s recent share appreciation.

Conclusion

Micron’s recent announcements — the $24 billion Fab 10B groundbreaking in Singapore and the $1.8 billion LOI for Taiwan’s P5 fab — together with a record quarter form a specific, measurable set of developments that directly affect MU. These moves accelerate capacity for high‑value memory types that are in strong demand from AI infrastructure buyers and have been a primary driver of MU’s rally. For investors, the near‑term focus is on disciplined execution of construction and integration milestones that will determine how quickly these capacity additions translate into revenue and margin gains.