Micron Announces Acquisition of PSMC's P5 Fab in Tainan Science Park

Micron (MU) has officially completed the acquisition of PSMC’s (Powerchip Technology Corporation) wafer factory located in the Miaoli Tongluo Science Park P5 plant. This acquisition is part of the agreement announced earlier on January 17.

Immediately after the transaction, plans to build a new factory commenced, shortening the cycle for expanding high-bandwidth memory production.

Micron announced that it has begun preparing to construct a new plant in Tongluo, immediately starting renovations on the existing cleanroom. The Tongluo new plant is expected to begin supporting shipments from the existing wafer factory in fiscal year 2028. The acquisition was finalized in mid-March 2026, with a ceremony for equipment move-in scheduled for the end of March. The site will then enter operational transition and technical adjustment phases.

Manish Bhatia, Vice President of Global Operations at Micron Technology, stated that the Tongluo new plant is a boost for Taiwan operations and a key part of the global expansion plan. Memory is a critical asset for AI product performance. He expressed heartfelt thanks to the Taiwanese government, construction partners, and equipment and material suppliers for their strong cooperation in accelerating capacity enhancement.

Micron’s urgent acquisition of an existing factory is driven mainly by two reasons:

1. Capacity as immediate strength: Building a new plant typically takes 3 to 5 years. Acquiring an existing cleanroom significantly shortens the expansion cycle. Micron expects this plant to start contributing to DRAM production by the second half of 2027.

2. Explosive demand for HBM: AI servers have an enormous need for high-bandwidth memory (HBM). Micron plans to extend this factory as part of Taiwan’s “Mega Campus,” strengthening the supply chain for advanced DRAM and HBM.

The capacity expansion for AI server demand for high-bandwidth memory (HBM) is a core consideration in this decision. Constructing a new wafer factory usually takes three to five years, but acquiring existing facilities allows Micron to reduce construction time.

The P5 plant will contribute to Micron’s DRAM output. It is an extension of Micron’s Taiwan Mega Campus, aimed at strengthening the production scale of advanced DRAM and high-bandwidth memory, meeting the high standards for data storage and transfer in AI computing architectures. From initial negotiations to the official deal, only about two months passed, reflecting the urgent need for manufacturing capacity in the memory industry under technological change pressures.

Miaoli County Magistrate Zhong Dongjin called for the “North Taiwan TSMC, South Micron” slogan, aiming to boost local economy.

The Miaoli County Government has proposed the “North Taiwan TSMC, South Micron” industrial corridor vision, integrating TSMC’s advanced process in Zhunan Industrial Park with Micron’s memory capacity in Miaoli Tongluo Industrial Park. The goal is to create approximately 2,500 jobs in the Tongluo Science Park area, covering Miaoli, Sanyi, Gongguan, Touqian, and Miaoli City, attracting young talent to return or stay for employment.

To address future population movement and traffic load, the county government promotes an “Invest in One, One Project” model to assist, reviewing external transportation routes and infrastructure around the industrial zones. Besides the existing P5 plant, there are plans for expansion of Plants 2 and 3. Through the clustering effect of the AI industry chain, the local government hopes to turn the production benefits of the science park into local development momentum by optimizing transportation and talent cultivation collaborations, building a more complete semiconductor industry cluster.

This article about Micron’s announcement of acquiring PSMC’s Tongluo P5 wafer plant first appeared on Lian News ABMedia.