Micron Technology said it plans to build a second semiconductor manufacturing facility at a Taiwan plant it recently acquired from Powerchip Semiconductor to expand production capacity of advanced memory chips used in artificial intelligence systems. The new facility will be built in Tongluo, Miaoli County, Taiwan, and will facilitate the production of cutting-edge DRAM products such as high-bandwidth memory (HBM). HBM is becoming more common as AI servers and data center infrastructure evolve.
Micron announced that it has completed the acquisition of Powerchip Tongluo P5 factory. The new plant will be roughly the same size as the company's already operating plant at the same location. The expansion is aimed at enhancing the company's production capabilities as the demand for memory chips continues to grow due to the rapid development of artificial intelligence applications.
High-bandwidth memory is becoming a critical component of complex computer systems, especially those designed for training AI and processing massive amounts of data. To meet the needs of cloud computing providers and IT companies that are building AI infrastructure, chipmakers are investing heavily in building new factories.
Micron announced that construction of the new factory should start by the end of fiscal 2026. This is a new phase in the company's plan to expand memory manufacturing globally.