TLDR
- Micron has finalized the purchase of PSMC’s Tongluo P5 facility in Taiwan
- The memory chipmaker will construct an additional manufacturing plant at the Tongluo location
- The upcoming fab will match the size of its current Miaoli County operation
- Production at both sites will center on cutting-edge DRAM and high-bandwidth memory (HBM)
- Ground-breaking for the additional facility is expected before fiscal 2026 concludes
Micron Technology ($MU) is significantly expanding its presence in Taiwan. The American memory semiconductor manufacturer announced Monday that it intends to construct an additional production facility at its recently acquired Tongluo location, following the completion of its takeover from Powerchip Semiconductor Manufacturing Corp (PSMC).
$MU | Micron Completes Acquisition of PSMC Tongluo P5 Fab in Taiwan
๐ ๐๐๐ฒ ๐๐ข๐ ๐ก๐ฅ๐ข๐ ๐ก๐ญ๐ฌ:
โค Micron acquires ๐๐๐๐ ๐๐จ๐ง๐ ๐ฅ๐ฎ๐จ ๐๐ semiconductor site in Taiwan.
โค Facility includes ~๐๐๐,๐๐๐ sq. ft. of ๐๐๐๐ฆ๐ฆ cleanroom space.
โค Site will expandโฆ pic.twitter.com/w6feTGelnw
โ Hardik Shah (@AIStockSavvy) March 16, 2026
The chipmaker has officially closed the acquisition of PSMC’s Tongluo P5 facility in Miaoli County. This transaction provides Micron with a strategic position that the company now aims to strengthen by adding a second manufacturing plant of comparable size next to the current one.
The additional manufacturing site is designed to enhance production capacity for next-generation DRAM and high-bandwidth memory (HBM) โ the specialized memory technology that drives AI processors and data center semiconductors.
Development is slated to commence before the conclusion of fiscal 2026, which for Micron ends in late August.
Doubling Down on HBM
HBM has emerged as one of the most sought-after components in the chip industry. These memory modules are critical for processors from Nvidia and other AI chip manufacturers, with market availability remaining constrained.
Micron ranks as the third leading supplier in the HBM market, trailing SK Hynix and Samsung. Increasing fabrication capacity in Taiwan represents a strategic effort to narrow this competitive divide.
The Tongluo campus provides Micron with an additional Taiwan manufacturing hub, complementing its established facilities in Taichung.
Operating dual fabrication plants at a single location can decrease overhead expenses and accelerate production scaling, as power infrastructure, distribution networks, and technical support are already established.
What the Tongluo Site Adds
The PSMC transaction was initially revealed last year and has now been finalized. PSMC operated as a foundry service provider, and its Tongluo P5 campus provides substantial floor area that Micron can adapt for its proprietary DRAM manufacturing processes.
Micron has not made public the monetary details of the finalized transaction.
The planned second facility at Tongluo would equal the first in magnitude, although Micron has not released production volume projections for either structure at this time.
Taiwan hosts a significant share of global advanced semiconductor production, and Micron’s growth there positions the company nearer to critical partners within the regional chip supply chain.
MU stock was up 5.13% at the time of reporting.
