Micron Technology plans to build a second semiconductor manufacturing facility in Taiwan after completing the acquisition of a fabrication plant previously owned by Powerchip Semiconductor Manufacturing Corp., as the U.S. chipmaker accelerates efforts to expand production of advanced memory chips used in artificial intelligence systems.
The new plant will be constructed in Tongluo, in Miaoli County, where Micron already operates a major memory manufacturing site. The expansion is designed to boost production of next-generation DRAM chips, including high-bandwidth memory (HBM), a specialized form of memory that has become critical for AI servers and high-performance data centers.
Micron confirmed it has completed the purchase of Powerchip’s Tongluo P5 facility, which will serve as the foundation for the new fabrication plant. The new factory will be roughly the same size as the existing Micron facility at the site, effectively doubling the company’s footprint in the area.
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The move comes as semiconductor companies worldwide rush to expand production of advanced memory chips to meet surging demand driven by the rapid buildout of artificial intelligence infrastructure.
HBM has emerged as one of the most important components in modern AI computing systems. Unlike conventional DRAM, HBM stacks multiple layers of memory vertically and connects them with advanced packaging technologies, allowing significantly higher data transfer speeds and energy efficiency.
This architecture is particularly suited for AI workloads that require rapid movement of enormous volumes of data between processors and memory.
Companies such as Nvidia rely heavily on HBM chips to power their most advanced AI accelerators used by cloud providers and research institutions. The memory technology has therefore become a crucial bottleneck in the global AI supply chain.
Industry analysts say the explosive demand for AI training hardware has created a shortage of HBM, prompting memory manufacturers to accelerate capital spending and expand manufacturing capacity.
Intensifying Competition Among Memory Manufacturers
Micron’s expansion in Taiwan highlights intensifying competition among the world’s largest memory chip producers to secure leadership in HBM technology. The company competes directly with South Korean rivals Samsung Electronics and SK Hynix, both of which dominate the global memory market and have also ramped up investment in HBM production.
SK Hynix in particular has emerged as a leading supplier of HBM chips used in Nvidia’s AI processors, giving it a significant early advantage in the fast-growing segment. Micron has been racing to close that gap by accelerating development of its own high-performance memory products and expanding manufacturing capacity across several regions.
The new Taiwan facility forms part of that broader strategy.
Taiwan Remains Central To Global Chip Supply Chains
Taiwan continues to play a pivotal role in the global semiconductor ecosystem. The island hosts some of the world’s most advanced manufacturing facilities and remains home to industry leaders, including Taiwan Semiconductor Manufacturing Company.
Although Micron is headquartered in the United States, the company has long relied on Taiwan as a key manufacturing base for its DRAM products. Expanding capacity there allows the company to take advantage of the region’s highly developed semiconductor workforce, supply chains, and infrastructure.
The decision to deepen its presence in Taiwan also underscores the continued importance of the island in supporting the rapid expansion of AI computing infrastructure worldwide.
However, the planned facility comes off as another example of the massive capital investments reshaping the semiconductor industry as companies respond to the AI boom. Building advanced semiconductor fabrication plants can cost tens of billions of dollars, reflecting the complexity of modern chip manufacturing and the expensive equipment required. Chipmakers have therefore been launching ambitious investment programs to expand capacity across Asia, the United States, and Europe.
Micron itself has announced several major projects in recent years, including large-scale memory manufacturing investments in the United States aimed at strengthening domestic semiconductor production.
The company said construction on the new facility is expected to begin by the end of its fiscal 2026, positioning the plant to support long-term demand for AI memory components.
Analysts have projected that the surge in AI investment from major technology companies — including cloud providers building massive data centers — is expected to drive sustained demand for advanced memory chips for years. As a result, manufacturers such as Micron are moving quickly to secure additional production capacity before shortages become more severe.