Micron Technology Plans Second Chip Facility at Taiwan’s Tongluo Site to Boost AI Memory Supply

Micron

Prime Highlight 

  • Micron Technology plans to build a second semiconductor fabrication plant at the Tongluo site in Miaoli County, Taiwan, to increase production of DRAM and HBM chips. 
  • The expansion aims to support the growing demand for AI-focused memory technologies and high-performance computing. 

Key Facts 

  • Micron finalized the acquisition of the Tongluo P5 plant from Powerchip Semiconductor Manufacturing Corp., where the new facility will be constructed. 
  • Construction of the new plant is scheduled to begin by the end of Micron’s fiscal year 2026, strengthening the company’s manufacturing presence in Taiwan. 

Background 

U.S.-based chipmaker Micron Technology announced plans to build a second semiconductor manufacturing facility in Taiwan as demand for advanced memory chips continues to rise, particularly from artificial intelligence applications.

The company said the new fabrication plant will be developed at the Tongluo site in Miaoli County, which it recently acquired from Powerchip Semiconductor Manufacturing Corp.. The expansion will allow Micron to increase production of leading-edge dynamic random-access memory (DRAM) and high-bandwidth memory (HBM), both widely used in AI data processing and high-performance computing.

Micron has finalized its deal to acquire the Tongluo P5 plant from Powerchip. The planned second facility will be built on the same site and will be similar in scale to the company’s existing fabrication plant located in the same region.

The company said the new facility is part of its plan to increase memory chip production and support the rising demand from AI technologies. Demand for HBM chips has grown quickly in recent years as tech companies build more infrastructure for AI training and data processing.

Construction of the new fabrication plant is scheduled to begin by the end of Micron’s fiscal year 2026. Once the company completes the project, it will increase the production of advanced memory products and strengthen its manufacturing presence in Taiwan.

Taiwan is one of the world’s most important semiconductor manufacturing hubs. It hosts many global chipmakers and suppliers. By expanding its operations in the region, Micron aims to improve supply capacity while supporting the rapidly growing market for AI-focused memory technologies.