Micron Expands Taiwan Operations to Meet Surging AI Memory Demand

Micron buys a key Taiwan fab from PSMC to expand HBM output for AI, with 2026 supply already sold out. New facility shipments start in FY2028.

Micron Technology has finalized the acquisition of a key semiconductor facility from Powerchip Semiconductor Manufacturing Corporation (PSMC) in Taiwan's Tongluo region. This strategic move is designed to significantly scale up the company's production of high-performance memory, a market experiencing unprecedented demand driven by artificial intelligence. The company has already sold out its entire projected High Bandwidth Memory (HBM) production capacity for calendar year 2026.

Strategic Location and Expansion Timeline

The newly acquired P5 site, situated approximately 25 kilometers from Micron's primary campus in Taichung, will serve as a complementary production hub. It features approximately 27,900 square meters of existing cleanroom space dedicated to 300-millimeter wafer fabrication.

Renovation work on the facility is scheduled to commence in March 2026, with the first substantial product shipments expected during the company's 2028 fiscal year. In a parallel development, Micron plans to break ground on a second building of comparable size before the conclusion of the current fiscal year. This new construction is projected to add a further 25,000 square meters of cleanroom capacity.

High Bandwidth Memory Drives Growth Strategy

The expansion is centrally focused on increasing output of High Bandwidth Memory (HBM), the critical memory component powering advanced AI servers and data centers. Micron's disclosure that its 2026 HBM supply is already fully allocated underscores the intense market demand. Industry analysts suggest these persistent supply constraints are likely to maintain firm pricing levels for memory chips in the near term.

Investors will gain a clearer view of how this robust demand is translating into financial performance when Micron reports its results for the second fiscal quarter of 2026 on March 18. The company's shares are currently trading at a 52-week high, having climbed roughly 38% since the start of the calendar year.