Singapore, Jan 30, 2026, 15:09 SGT — Regular session.
- Sembcorp slipped 1.5% in afternoon trading following a steep rise the previous day
- Company boosted its long-term power supply agreement with Micron by 150 MW
- Sembcorp said near-term earnings impact should be limited; results due Feb 25
Sembcorp Industries dropped 1.5% to S$6.04 in afternoon trading Friday, erasing some gains from the previous session’s rally after announcing a new power supply deal linked to Micron’s Singapore expansion. Investing.com
The pullback is notable since Sembcorp stands out as a key listed play on Singapore’s expanding electricity demand, driven by data centres and chip factories vying for reliable supply. The stock jumped 3.5% Thursday after the company announced the Micron deal. The Straits Times
Sembcorp revealed that its fully owned arm, Sembcorp Power, has inked a key terms agreement with Micron Semiconductor Asia Operations to boost an 18-year power purchase pact originally set up in 2023. The deal increases supply by 150 megawatts (MW) but keeps the contract’s 2041 expiry intact.
A power purchase agreement is a long-term deal that secures electricity supply for the buyer, usually cutting price and supply risks. For the supplier, it offers clear insight into future demand.
Sembcorp has been providing up to 450 MW to Micron’s Singapore production sites under their previous deal. The new agreement boosts the contracted supply to as much as 600 MW. The company noted the signing is “not expected to have a material impact” on FY2026 earnings per share or net tangible asset per share.
Micron kicked off construction this week on a new facility in Woodlands, launching a $24 billion, 10-year expansion designed to keep pace with soaring demand for memory chips powering AI and data processing, The Business Times reported. The Business Times
Sembcorp shares closed at S$5.92 on Jan. 28, prior to the announcement, according to The Edge Singapore.
Details on pricing and margins in the expanded Micron deal remain scarce, and Sembcorp has downplayed any immediate boost to earnings. This sets the stage for profit-taking after Thursday’s rally, particularly if appetite for risk wanes.
