Micron Technology Plans Second Taiwan Chip Facility to Meet AI Memory Demand

U.S. memory chipmaker Micron Technology has announced plans to construct a second manufacturing facility in Taiwan, reinforcing its commitment to expanding production capacity amid rapidly growing artificial intelligence demand. The new fab will be located at the Tongluo site in Miaoli County, recently acquired from Powerchip Semiconductor Manufacturing Corp (PSMC).

Micron confirmed it has officially completed the acquisition of PSMC's Tongluo P5 site, and the upcoming second facility is expected to be built on a scale comparable to the existing fab already operating on the same grounds. Construction is targeted to begin before the close of fiscal year 2026, signaling a clear urgency in scaling up operations.

The primary driver behind this expansion is the surging global demand for advanced memory solutions, particularly high-bandwidth memory (HBM) — a critical component in powering modern AI infrastructure. As data centers and AI accelerators continue to proliferate, chipmakers like Micron are under increasing pressure to secure reliable, high-volume supplies of leading-edge DRAM products. By establishing a second production hub at Tongluo, Micron aims to strengthen its position in the competitive HBM market while reducing potential supply chain vulnerabilities.

Taiwan remains a strategic cornerstone for semiconductor manufacturing, offering a well-established ecosystem of suppliers, skilled engineers, and advanced infrastructure. Micron's decision to deepen its footprint in the region underscores confidence in Taiwan's long-term role in global chip production.

This investment also reflects the broader industry trend of memory manufacturers racing to align capacity with the explosive growth of generative AI, large language models, and high-performance computing workloads. With HBM demand projected to continue climbing, Micron's Tongluo expansion positions the company to capture a larger share of the AI-driven memory market in the years ahead.