Micron Buys Taiwan Fab to Meet Surging AI Chip Demand

The acquisition of Powerchip Semiconductor’s Tongluo P5 site in Miaoli County adds approximately 300,000 square feet of existing 300mm cleanroom space, with a second facility of comparable scale planned before end of fiscal 2026.

Micron Technology announced on March 15 the completion of its acquisition of Powerchip Semiconductor Manufacturing Corporation’s P5 site in Tongluo, Miaoli County, Taiwan. The transaction was first announced on January 17, 2026. Financial terms were not disclosed.

The Tongluo site will function as an extension of Micron’s existing vertically integrated manufacturing campus in Taichung, located approximately 15 miles away. It includes around 300,000 square feet of existing 300mm cleanroom space and will be used to expand production of leading-edge DRAM products, including High Bandwidth Memory, to address growing demand from AI workloads. Micron began preparatory work at the site following the January deal announcement and will start retrofitting the existing cleanroom immediately. The company expects meaningful product shipmen ts from the existing facility to begin in fiscal 2028.

“The Tongluo facility complements our Taiwan operations and is a critical component of our global expansion plans,” said Manish Bhatia, Executive VP of global operations, Micron Technology. Memory is a strategic asset that dictates AI product performance, and the acquisition and phased ramp of this site strengthens our ability to capitalize on these significant opportunities.

We appreciate the strong collaboration from the Taiwan government, our construction partners, and equipment and materials suppliers to enable and accelerate the ramp of our production capacity at this site.
Manish Bhatia, Executive VP of global operations, Micron Technology

The second phase of the site’s development is already in planning. Micron intends to begin construction of a new facility at Tongluo by the end of fiscal 2026, adding approximately 270,000 square feet of additional cleanroom space, roughly equivalent in scale to the existing building being retrofitted. Together, the two facilities would give Micron a substantially expanded manufacturing footprint in Taiwan at a time when demand for HBM, used in AI accelerators, continues to outpace available supply across the industry.

Micron acknowledged the Taiwan central government, including the Ministry of Economic Affairs, National Science and Technology Council, and Hsinchu Science Park, as well as Miaoli County Government and PSMC for their support in completing the transaction.

Source: Micron Technology official press release via Investor Relations, March 15, 2026. Financial terms of the acquisition were not disclosed.

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