Micron will acquire a second memory plant in Taiwan, positioning it next to the one it previously bought from PSMC.

Micron Technology expands memory production in Taiwan and Japan

*One of the largest memory chip manufacturers – Micron Technology – completed a deal with Taiwanese contract manufacturer PSMC, buying the island’s P5 plant for $1.8 billion USD. This event confirms how the rapid growth in AI demand opens new opportunities even for firms that were not previously at the forefront of technological innovation.*

What the acquisition included
- Purchase of the site

Micron acquired the P5 manufacturing facility (area ≈ 28,000 m²) in Tuntou. On this property the company plans to launch production and packaging of HBM memory chips as well as conventional DRAM, which is in demand in the AI‑driven market.

- Collaboration with PSMC

As part of the deal Micron intends to use P5 equipment for testing and packaging of HBM. The introduction of new Micron equipment will replace outdated machines on site, while the remaining PSMC inventory will be moved to another part of Taiwan rather than scrapped.

- Relocation of staff

Moving PSMC employees and equipment will occur in phases to minimize production disruptions. According to the plan, after a year and a half Micron will become the full owner of the Tuntou operation.

Planned expansion
- Second plant in Taiwan

Micron announced construction of a second memory packaging facility on the same site. It will be comparable in scale to the first, allowing processing of 300 mm silicon wafers.

- Construction plan

The new facility will begin construction in the summer of this year and come into operation within two‑three years. It is located near Micron’s existing infrastructure in Taichung.

Further steps beyond Taiwan
Country | Project | Status | Japan | New HBM and DRAM plant in Hiroshima (western part) | Construction active, foundations laid in May; launch planned for 2028. Government subsidies support financing. | India | First Micron chip testing and packaging facility | Opened at the end of February; at full capacity can process up to 10 % of Micron’s global production volume.

Conclusion
Micron Technology demonstrates active growth in manufacturing capacity, focusing on high‑technology memory segments demanded in the age of artificial intelligence. Acquiring and expanding facilities in Taiwan, Japan, and India allows the company to strengthen its position as a DRAM and HBM supplier for global markets.