Key Highlights
- Micron finalizes purchase of PSMC’s Tongluo P5 location in Taiwan
- Company reveals plans for additional manufacturing plant at the Tongluo campus
- Second fab will match the capacity of Micron’s current Miaoli County operation
- Production focus includes advanced DRAM and high-bandwidth memory (HBM) chips
- Groundbreaking scheduled before fiscal year 2026 concludes
Micron Technology ($MU) is significantly expanding its presence in Taiwan. On Monday, the American memory chip manufacturer revealed intentions to construct an additional production facility at the Tongluo location it just acquired from Powerchip Semiconductor Manufacturing Corp (PSMC).
$MU | Micron Completes Acquisition of PSMC Tongluo P5 Fab in Taiwan
👉 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:
➤ Micron acquires 𝐏𝐒𝐌𝐂 𝐓𝐨𝐧𝐠𝐥𝐮𝐨 𝐏𝟓 semiconductor site in Taiwan.
➤ Facility includes ~𝟑𝟎𝟎,𝟎𝟎𝟎 sq. ft. of 𝟑𝟎𝟎𝐦𝐦 cleanroom space.
➤ Site will expand… pic.twitter.com/w6feTGelnw
— Hardik Shah (@AIStockSavvy) March 16, 2026
The chipmaker has finalized the purchase of PSMC’s Tongluo P5 campus in Miaoli County. This acquisition provides Micron with a strategic position that it intends to strengthen by adding a second manufacturing plant of comparable size next to the current one.
The additional production plant aims to increase output of cutting-edge DRAM and high-bandwidth memory (HBM) — the specialized memory chips essential for AI processors and data center applications.
The project’s construction phase will commence before the conclusion of fiscal 2026, which for Micron ends in late August.
Strengthening HBM Market Position
HBM has emerged as a critical component in the semiconductor sector. These memory chips are essential for systems built by Nvidia and competing AI hardware manufacturers, with global supply struggling to meet demand.
Micron ranks as the third largest HBM supplier globally, trailing SK Hynix and Samsung. This Taiwan capacity expansion represents a strategic effort to narrow the competitive divide.
The Tongluo campus establishes Micron’s second Taiwan manufacturing hub, complementing its current Taichung operations.
Constructing dual facilities at one location offers advantages including lower infrastructure expenses and accelerated production scaling, as essential utilities, transportation networks, and technical support are already established.
Strategic Value of the Tongluo Acquisition
The PSMC deal was initially unveiled in the previous year and has now been successfully completed. PSMC operated as a foundry manufacturer, and its Tongluo P5 campus provides valuable production space that Micron will adapt for its proprietary DRAM manufacturing methods.
Micron has kept the financial details of the completed transaction confidential.
While the planned second Tongluo facility will match the first in overall scope, Micron hasn’t yet released specific production capacity numbers for either structure.
Taiwan hosts a substantial portion of global advanced semiconductor production, and Micron’s regional expansion positions the company closer to critical partners within the local chip supply chain.
MU stock was up 5.13% at the time of reporting.
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