Micron Technology, the American multinational semiconductor company, has completed its $1.8 billion acquisition of Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site in Tongluo, Miaoli County, Taiwan. The transaction closed on March 15, 2026, following an earlier announcement on January 17.
Micron said it began preparing the site immediately after the acquisition was announced, even before the deal formally closed.
The Tongluo P5 facility includes approximately 300,000 square feet of existing 300mm cleanroom space and is located about 15 miles from Micron’s vertically integrated mega campus in Taichung. The company describes the site as a direct extension of its existing Taiwan manufacturing operations.
Starting this month, Micron will begin re-equipping and reconfiguring the facility, which was previously operated by Powerchip, to support Micron’s own manufacturing processes. The company expects meaningful product shipments from the facility beginning in fiscal 2028.
Micron also announced plans to build a second facility of comparable scale at the same Tongluo location, adding roughly 270,000 square feet of additional cleanroom space.
Construction on the new facility is expected to begin before the end of fiscal 2026, bringing the site’s total cleanroom footprint to around 570,000 square feet across both phases.
Both facilities are intended to expand production of DRAM (dynamic random-access memory) — the standard memory technology used to temporarily store data for active processing in computers and servers.
The expansion will also support production of high-bandwidth memory (HBM), a stacked form of DRAM designed to move large volumes of data at extremely high speeds. HBM has become critical infrastructure for AI processors and large-scale data centre systems.
Manish Bhatia, Micron’s Executive Vice President of Global Operations, said in a statement: “Memory is a strategic asset that dictates AI product performance, and the acquisition and phased ramp of this site strengthens our ability to capitalize on these significant opportunities. The Tongluo facility complements our Taiwan operations and is a critical component of our global expansion plans.”
Micron also acknowledged support from Taiwan’s Ministry of Economic Affairs, the National Science and Technology Council, Hsinchu Science Park, and the Miaoli County Government during the acquisition process.
Micron is scheduled to report its fiscal second-quarter 2026 results on March 18, two days from now.
The company posted $13.6 billion in revenue in fiscal Q1 2026 and has forecast $18.7 billion in revenue for Q2, along with non-GAAP earnings per share of $8.42.
Jemi Motesho
