U.S. memory chipmaker Micron Technology said on Monday that it plans to build a second manufacturing facility in Taiwan at the Tongluo site it recently acquired from Powerchip Semiconductor Manufacturing Corp.
The new facility will help it expand supply of leading-edge DRAM products including high-bandwidth memory (HBM) to support surging AI demand, the company said. Micron also mentioned it has completed the acquisition of PSMC’s Tongluo P5 site and the new second facility would be of similar scale to the existing fab in Miaoli County.
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The new site will reportedly serve as an extension of Micron’s “mega campus” in Taichung. It is designed to boost production of leading-edge DRAM and High Bandwidth Memory (HBM), both of which are critical components for AI servers and high. Construction is set to begin by the end of fiscal 2026. Micron expects the retrofitted P5 facility to begin meaningful product shipments by fiscal 2028.
Micron had said in January that it had signed a letter of intent to acquire Powerchip’s P5 fabrication site in Tongluo, Miaoli County, Taiwan, for $1.8 billion in cash. Microchip had said it expects the deal to help boost its output of dynamic random access memory (DRAM) wafers beginning in the second half of 2027.
Research firm TrendForce had said Micron’s acquisition of Powerchip’s Tongluo fab will help Micron expand its advanced-process DRAM capacity, creating room for an upward revision to global DRAM supply in 2027. It said the capacity contribution from the first phase of the Tongluo fab in the second half of 2027 will be equivalent to more than 10% of Micron’s global capacity in the fourth quarter of 2026.
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Micron is one of the only three major suppliers of high bandwidth memory (HBM) chips essential to AI technology. South Korea’s Samsung and SK Hynix are the others.
Micron CEO Sanjay Mehrotra had said that he expects memory markets to remain tight beyond 2026.
Micron has been operating in Taiwan for more than 30 years and is the island’s largest foreign direct investor, according to Micron Taiwan’s website. Its facilities in Taichung, Taiwan, are a key production hub for DRAM and HBM products.
The company had said the acquisition “complements … ongoing global expansion plans as the company invests to meet long-term demand from its customers.”