- Micron acquires PSMC Tongluo fab to expand DRAM and HBM capacity
- New facility targets AI-driven demand with production expected by 2028
A strategic semiconductor move has been finalized as Micron Technology completes its acquisition of a major fabrication site in Tongluo, Taiwan, signaling a strong push toward AI-driven memory demand. The expansion strengthens manufacturing capabilities while positioning the company to scale next-generation DRAM and High Bandwidth Memory output in response to accelerating global data workloads.
Acquisition Strengthens Taiwan Manufacturing Footprint
Micron Technology has officially taken ownership of the former P5 fabrication facility from Powerchip Semiconductor Manufacturing Corporation in Tongluo, Miaoli County. This site adds significant operational depth alongside Micron’s existing Taichung presence, enabling tighter regional integration and improved production efficiency. The facility includes approximately 300,000 square feet of 300mm cleanroom space, allowing advanced semiconductor processes to be scaled efficiently while supporting long-term capacity planning in a high-demand memory market.
Scaling DRAM and HBM for AI Workloads
The Micron Technology Taiwan DRAM expansion focuses heavily on increasing output of leading-edge DRAM solutions, particularly High Bandwidth Memory, which is critical for artificial intelligence, data centers, and high-performance computing. With AI workloads driving exponential memory requirements, this facility plays a pivotal role in ensuring supply stability. The added cleanroom capacity allows Micron to align production with industry needs, improving performance benchmarks and reducing latency challenges associated with next-generation computing systems.
Production Timeline and Future Expansion Plans
Initial product shipments from the Tongluo fab are expected to begin in fiscal 2028, marking a phased ramp-up strategy. Beyond the current facility, Micron is already planning a second expansion phase, which will introduce an additional 270,000 square feet of cleanroom space. Construction for this new facility is scheduled to begin by the end of fiscal 2026, reflecting a forward-looking approach to sustaining growth in semiconductor manufacturing capacity and maintaining competitiveness in the global memory market.
| Facility Component | Details |
|---|---|
| Location | Tongluo, Miaoli County, Taiwan |
| Existing Cleanroom Space | ~300,000 sq ft |
| Future Expansion | ~270,000 sq ft additional space |
| Production Start | Fiscal 2028 |
This development reinforces the strategic importance of Taiwan in the global semiconductor ecosystem while enabling Micron to respond effectively to rising demand for AI memory solutions and advanced DRAM technologies.
Frequently Asked Questions
What is the purpose of the Micron Technology Taiwan DRAM expansion?
The expansion aims to increase DRAM and High Bandwidth Memory production capacity to meet rapidly growing demand driven by artificial intelligence, data centers, and high-performance computing applications worldwide.
When will production begin at the Tongluo facility?
Micron expects meaningful product shipments from the acquired Tongluo fabrication site to start in fiscal 2028, following phased ramp-up and operational integration.
What additional expansion is planned at the site?
Micron plans to construct a second facility with approximately 270,000 square feet of cleanroom space, with construction expected to begin by the end of fiscal 2026.
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