Micron officially announced today (March 16) that it has completed...The acquisition of PSMC's P5 plant in Tongluo, Miaoli, TaiwanMicron successfully acquired ownership of the facility. This transaction not only provides Micron with approximately 300,000 square feet of readily available 300mm cleanroom space, but also creates strong vertical integration benefits with its Taichung plant, located only 15 miles away. To meet the explosive demand for high-bandwidth memory (HBM) and advanced DRAM in the AI era, Micron announced that the renovation of its existing cleanroom will begin immediately in March, and it plans to start construction on its second wafer fab by the end of fiscal year 2026.
Seamless integration: Existing factory renovation starts immediately
This acquisition stems from an agreement announced by both parties on January 17, 2026. With the formal completion of the transaction, Micron's operations in Taiwan have once again achieved substantial expansion.
The biggest advantage of the Tongluo P5 plant lies in its "ready-to-use" capability. The plant boasts approximately 300,000 square feet of existing 300mm cleanroom space, and Micron quietly began preparations for the new plant after announcing the acquisition in January. With the transfer of ownership, the renovation of the existing facilities will commence in full this month. According to official plans, the Tongluo plant is expected to begin supporting large-scale shipments of advanced DRAM and HBM products starting in fiscal year 2028.
In addition, geographical advantages are also key. The Tongluo plant is only about 15 miles away from Micron's existing large-scale plant in Taichung. This extremely short physical distance will greatly enhance the extension and synergy between the two plants, and further optimize the vertically integrated production process.
Uninterrupted expansion: A second cleanroom will be built before the end of the year.
In addition to making full use of existing resources, Micron also unveiled its next phase of expansion plans for the plant.
To meet the growing AI-driven demand, Micron plans to begin construction on its second wafer fab at its Causeway site by the end of fiscal year 2026. This will add approximately 27 square feet of cleanroom space, further strengthening Micron's capacity reserves in advanced memory manufacturing.
Strengthening its presence in Taiwan and seizing core AI assets
Manish Bhatia, Micron's Executive Vice President of Global Operations, gave high strategic praise to the completion of this acquisition.
He stated, "Memory has become a crucial core asset determining the performance of AI products, and the Tongluo plant will further strengthen our operational presence in Taiwan, making it a vital part of Micron's global expansion strategy. Through the acquisition and phased expansion of this plant, Micron's ability to capitalize on these significant market opportunities will be greatly enhanced."
In its statement, Micron also expressed its gratitude to Powerchip Technology, the Central Government of Taiwan (including the Ministry of Economic Affairs, the National Science Council, and the Hsinchu Science Park Administration), and the Miaoli County Government for their strong support, which enabled the transaction to be successfully implemented with extremely high efficiency and speed.
Analysis of viewpoints
For Powerchip Semiconductor, disposing of underutilized factory assets can effectively realize cash and reduce capital expenditure pressure; while for Micron, in order to catch up with its competitors in the fiercely competitive HBM (High Bandwidth Memory) market, it is too slow to "build a new wafer fab from scratch".
Purchasing existing cleanroom facilities and retrofitting the equipment is currently the most efficient "add-on" upgrade method for the tech industry to cope with the explosive demand for AI. Through this acquisition, Micron not only saved considerable construction time but also leveraged the geographical advantages of Causeway and Taichung to further establish Taiwan as the strongest stronghold for global AI memory production.
