This level of demand from Micron reflects the power intensity of modern memory fabs tied to AI. HBM production for AI servers has driven every major memory maker into simultaneous expansion, and the electrical infrastructure required to support those fabs is now outpacing the supply chain built to serve it.
Micron's Singapore project , where production is targeted for late 2028, is one piece of a broader global buildout. The company has acquired PSMC's Miaoli Tongluo fab in Taiwan for $1.8 billion, with that facility slated for 2026, while new plants in Idaho and New York are underway, and a Hiroshima facility is expected to begin operations in the second half of 2026.
The toll this is taking is already visible in pricing and availability, with major heavy electrical equipment suppliers Fortune Electric and Allis Electric both having implemented price increases of 20% to 30%, driven by the surge in orders and rising costs of copper and other raw materials. Meanwhile, some transformer manufacturers have declined to quote on large-scale semiconductor projects entirely, citing an inability to meet the tight timelines and volume requirements. Industry sources say no single maker can absorb the scale of orders now flowing from the AI and semiconductor sectors.
International transformer brands, despite commanding higher prices, are gaining ground because their larger overseas factories can push out more units. Domestic Taiwanese manufacturers have responded by collaborating with secondary suppliers, dividing specifications and capacity across multiple firms to meet individual customer demands.
Transformers are also shared infrastructure, and, beyond fabs, the same equipment is needed for AI data center construction, utility-scale energy storage, and grid expansion projects. A supply chain that was already stretched before the AI buildout wave is now absorbing orders measured in the hundreds of units per project.
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Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/dram/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/dram/microns-24-billion-singapore-fab-could-need-500-transformers#main
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