On March 16, Micron announced the completion of a $1.8 billion acquisition of the Tongluo P5 semiconductor fabrication plant from PSMC. The finalized deal accelerates Micron's efforts to establish a vertically integrated, high-bandwidth memory manufacturing base in Taiwan.
Following the closure of the transaction, Micron initiated a two-phase capacity expansion plan to meet strong artificial intelligence-driven demand.
Renovation of the facility's existing 300,000-square-foot 300mm cleanroom begins this month, with volume shipments expected by 2028.
After finishing the first phase, Micron plans to break ground on a second cleanroom at the Tongluo site before the end of fiscal 2026, adding roughly 270,000 square feet of production space.
The site, located about 15 miles from Micron's large Taichung campus, will form a tightly integrated vertical manufacturing cluster.
“Memory has become a critical core asset in determining AI product performance,” said Manish Bhatia, Micron's executive vice president of global operations.
“The acquisition of this site and our phased capacity expansion will strengthen Micron's ability to capture these significant market opportunities.” （Related： MediaTek CEO: Taiwan's Semiconductor Edge Cannot Be Easily Copied Elsewhere ｜ Latest ）
For PSMC, the $1.8 billion influx significantly strengthens its near-term financial position by shedding the heavy depreciation and operational costs of the underutilized Tongluo facility. With this financial burden removed, the company is pivoting its core strategic focus toward next-generation AI technology architecture.
