TLDR
- Micron has completed its acquisition of PSMC’s Tongluo P5 site in Taiwan
- It now plans to build a second manufacturing facility at the same Tongluo site
- The new fab will be a similar scale to its existing Miaoli County facility
- Both facilities will focus on leading-edge DRAM and high-bandwidth memory (HBM)
- Construction on the second facility is set to begin by the end of fiscal 2026
Micron Technology ($MU) is doubling down on Taiwan. The U.S. memory chipmaker said Monday it plans to build a second manufacturing facility at its newly acquired Tongluo site, which it recently took over from Powerchip Semiconductor Manufacturing Corp (PSMC).
$MU | Micron Completes Acquisition of PSMC Tongluo P5 Fab in Taiwan
👉 𝐊𝐞𝐲 𝐇𝐢𝐠𝐡𝐥𝐢𝐠𝐡𝐭𝐬:
➤ Micron acquires 𝐏𝐒𝐌𝐂 𝐓𝐨𝐧𝐠𝐥𝐮𝐨 𝐏𝟓 semiconductor site in Taiwan.
➤ Facility includes ~𝟑𝟎𝟎,𝟎𝟎𝟎 sq. ft. of 𝟑𝟎𝟎𝐦𝐦 cleanroom space.
➤ Site will expand… pic.twitter.com/w6feTGelnw
— Hardik Shah (@AIStockSavvy) March 16, 2026
The company confirmed it has completed the acquisition of PSMC’s Tongluo P5 site in Miaoli County. That deal gives Micron a foothold it now plans to expand, with a second fab of similar scale set to be built alongside the existing one.
The new facility is aimed at boosting supply of leading-edge DRAM and high-bandwidth memory (HBM) — the type of memory that powers AI accelerators and data center chips.
Construction is scheduled to begin by the end of fiscal 2026, which for Micron runs to late August.
Doubling Down on HBM
HBM has become one of the most in-demand products in the semiconductor industry. It is used in chips from Nvidia and other AI hardware makers, and supply has been tight.
Micron is the third major player in the HBM space, behind SK Hynix and Samsung. Expanding fab capacity in Taiwan is a direct move to close that gap.
The Tongluo location gives Micron a second manufacturing base in Taiwan, in addition to its existing operations in Taichung.
Having two fabs at the same site can reduce infrastructure costs and speed up production ramps, since utilities, logistics, and engineering resources are already in place.
What the Tongluo Site Adds
The PSMC acquisition was first announced last year and has now formally closed. PSMC was a contract chipmaker, and its Tongluo P5 site adds usable floor space that Micron can convert to its own DRAM processes.
Micron has not disclosed the financial terms of the completed acquisition.
The second facility at Tongluo would mirror the first in scale, though Micron has not given capacity figures for either building at this stage.
Taiwan is home to a large portion of the world’s advanced chip manufacturing, and Micron’s expansion there puts it closer to key suppliers in the regional semiconductor ecosystem.
MU stock was up 5.13% at the time of reporting.
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