[News] Micron Plans 2nd Tongluo Facility After PSMC P5 Acquisition; Construction to Start by FY26

As Micron announced on March 15 that it has formally completed the acquisition of Powerchip Semiconductor Manufacturing Corp (PSMC)’s P5 site in Tongluo, Taiwan, it also unveiled plans for a second manufacturing hub at the same site, signaling an ambitious expansion on the island, as highlighted by Reuters.

According to Micron’s press release, while the Tongluo facility acquired from PSMC is expected to support substantial product shipments from the existing fab starting in fiscal 2028, the company is planning a second expansion phase. Construction on a new facility of similar scale is set to begin by the end of fiscal 2026, adding roughly 270,000 square feet of cleanroom space to boost next-generation DRAM production, including HBM.

For now, the newly acquired facility will serve as an extension of its vertically integrated mega-campus in Taichung, just 15 miles away, according to the company. Liberty Times adds that Micron’s Taiwan operations are centered in Taichung, with additional facilities in Linkou and a testing site in Tainan.

Micron said the existing site features roughly 300,000 square feet of 300mm cleanroom space and is set to bolster production of cutting-edge DRAM, including HBM. Liberty Times, meanwhile, suggests that retrofitting of the existing cleanroom is scheduled to begin this month.

Micron Fast-tracks Asian Expansion

Micron is not only expanding in Taiwan, but ramping up its capacity across Asia. Yahoo! Japan, citing Television Shin-Hiroshima, reported in early March that at Micron Memory Japan’s Hiroshima factory, land development has begun on the western side of the site, covering approximately 9.5 hectares. According to on-site signage, construction is scheduled to continue until February 2028, the report notes.

According to sources cited by the reports, Micron plans to mass-produce next-generation DRAM and high-performance memory for AI by fiscal 2029, investing approximately ¥1.5 trillion, with the Japanese Ministry of Economy, Trade and Industry providing up to ¥536 billion in subsidies.

As previously reported by Nikkei, Micron aims to break ground on a new factory within its Hiroshima Plant compound in Higashi-Hiroshima in May 2026, targeting the start of HBM chip shipments around 2028. Recent updates from Japanese media suggest that the project is advancing faster than initially expected.

Notably, Micron opened its first advanced memory assembly and test (ATMP) facility in India on February 28 in Sanand, Gujarat. According to Business Standard, once operating at full capacity, the site could produce up to 10% of Micron’s global output, serving both domestic and international markets.

Read more

• [News] Micron Reportedly Schedules March 26 Tool Move-In at PSMC Tongluo Fab, Signaling Next Deal Phase
• [News] Micron Reportedly Weighs Acquiring PSMC 12-Inch Tongluo Fab, With Multiple Partners Also Interested

(Photo credit: Micron)