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,” said the energy producer.
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.
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Sembcorp is set to be a prime beneficiary of an expected slump in liquefied natural gas (LNG) prices, according to Morgan Stanley, which placed the company on its “Most Preferred” list of energy equities.
The bank expects LNG prices to fall to two-decade lows by 2027, saving Asia about US$100 billion in energy costs.
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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