March 16, 2026
Micron Technology has officially completed the purchase of the Tongluo P5 semiconductor fabrication site from Powerchip Semiconductor Manufacturing Corporation in Taiwan.
The deal helps Micron’s manufacturing capacity as demand for DRAM and high-bandwidth memory (HBM) rises rapidly due to artificial intelligence, cloud computing, and data center growth.
The facility is located in Tongluo, Miaoli County, around 15 miles from Micron’s existing mega-campus in Taichung.
As Micron acquires Taiwan Chip Facility, it aims to expand production of advanced memory chips that power AI systems, servers, and high-performance computing.
Micron PSMC’s Tongluo P5 Acquisition At A Glance
| Detail | Information |
| Buyer | Micron Technology |
| Seller | Powerchip Semiconductor Manufacturing Corp. |
| Facility | Tongluo P5 semiconductor fab |
| Location | Tongluo, Miaoli County, Taiwan |
| Existing cleanroom | ~300,000 sq ft |
| Planned expansion | ~270,000 sq ft additional space |
| Production timeline | Shipments expected in fiscal 2028 |
| Focus products | DRAM and high-bandwidth memory (HBM) |
Tongluo P5 Fab to Support DRAM and HBM Production
The Tongluo P5 facility includes around 300,000 square feet of 300mm cleanroom space, designed for semiconductor wafer manufacturing.
Micron will begin retrofitting the existing cleanroom in March 2026 to prepare the site for advanced DRAM production. The company expects the fab to begin meaningful product shipments in fiscal 2028.
The Taiwan expansion will also include a second cleanroom facility at the same site.
Plans indicate construction could begin by the end of fiscal 2026, adding about 270,000 square feet of additional cleanroom capacity.
Why the Tongluo Facility Matters for AI Memory
Micron executives say the acquisition will help the company respond to the rapid rise in AI-related computing needs.
Manish Bhatia, Executive Vice President of Global Operations at Micron, said:
“Memory is a strategic asset that dictates AI product performance. The acquisition and phased ramp of this site strengthens our ability to capitalize on these significant opportunities.”
Industry demand for high-bandwidth memory and DRAM chips has surged as AI models and data center workloads require faster memory access and higher capacity.
End Note
While Micron acquires Taiwan Chip Facility PSMC’s Tongluo P5, it strengthens Micron’s global manufacturing footprint as memory demand rises across AI, cloud computing, and high-performance computing sectors.
By integrating the site with its nearby Taichung operations, Micron, one of the top semiconductor companies in the world, aims to scale production of advanced memory chips more efficiently.
The decision to acquire Taiwan PSMC’s Tongluo P5 chip facility to expand DRAM products reflects how semiconductor companies are increasing capacity to meet the next wave of AI-driven computing demand.
Maria Isabel Rodrigues
