Sembcorp expands Micron power deal to support AI growth
The chipmaker has begun construction on a Woodlands facility as part of a US$24 billion investment
[SINGAPORE] Sembcorp Industries on Wednesday (Jan 28) said that its wholly owned subsidiary Sembcorp Power will supply memory chip giant Micron with an additional 150 megawatts (MW) of power to support its “growing operations”.
The chipmaker broke ground on a Woodlands facility a day earlier, as part of a 10-year expansion plan worth US$24 billion. The plant aims to capture rising demand for Nand memory used in artificial intelligence (AI) workloads and data processing.
Sembcorp said it has been “supplying up to 450 MW of power to Micron’s Singapore production facilities” as part of an existing power purchase agreement.
The added capacity will not change the agreement’s original 18-year term through 2041.
“Sembcorp is supporting the continued build-out of advanced semiconductor manufacturing capabilities that underpin the global AI ecosystem,” it added.
The agreement is “not expected to have a material impact” on Sembcorp’s earnings per share and net tangible asset per share for FY2026 ending Dec 31.
Liquefied natural gas prices are expected to fall to two-decade lows by 2027, based on Morgan Stanley estimates, helping Asia to achieve about US$100 billion in energy cost savings.
Sembcorp was flagged as one prime beneficiary of this trend, with the bank highlighting it in its “Most Preferred” list of energy equities.
Shares of Sembcorp fell 0.2 per cent or S$0.01 to close at S$5.92 on Wednesday, before the announcement.
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