Micron to Build Second Taiwan Chip Fab

According to reports, Micron Technology is planning to build a second semiconductor fabrication facility at its Tongluo site in Taiwan, a location the company recently acquired from Powerchip Semiconductor Manufacturing Corporation (PSMC). The expansion highlights Micron's strategy to strengthen its memory manufacturing capacity as global demand for AI infrastructure continues to accelerate.

The new facility will focus on increasing output of advanced DRAM products, including high-bandwidth memory (HBM), which has become a critical component in AI servers, accelerators, and high-performance computing systems. As AI workloads grow rapidly, demand for HBM is rising across data centers and next-generation computing platforms, pushing memory manufacturers to expand capacity.

Micron confirmed that it has completed the acquisition of PSMC's Tongluo P5 wafer fab site earlier this year. The planned second factory will be similar in scale to Micron's existing manufacturing facility in Miaoli County, creating a larger production cluster for DRAM technologies in the region.

In January, Micron finalized a deal worth approximately $1.8 billion to acquire the P5 fab facilities from PSMC. The agreement also includes cooperation in wafer back-end packaging and assembly operations. In addition, Micron will support PSMC's legacy DRAM product portfolio as part of the broader collaboration between the two companies.

Construction of Micron's new manufacturing plant is expected to begin by the end of the company's fiscal year 2026. Once completed, the project is expected to strengthen the supply of advanced memory technologies and play a key role in supporting the expanding AI ecosystem.