According to today’s media report, Micron is investing NT$400 billion (approximately US$12.788 billion) to build two fabs in Taiwan. After the completion of the project, Micron will produce DRAMs in the new plant with next-generation processes.

In the A3 and A5 wafer fabs that Micron invested in this plan, the A3 plant will be completed in August next year, and the latest 1z process trial production will be introduced in the fourth quarter of next year. By then, the gap between Micron and Samsung will be narrowed. The A5 plant will gradually expand its production capacity according to market demand, with a target monthly capacity of 60,000 pieces.

At present, Micron Taiwan Branch confirmed the news of the construction of the A3 plant and said it has entered the construction phase. According to analysts, Micron has spent huge sums of money to expand the factory during the low tide of the industry, mainly because Micron believes that 5G will drive the development of applications such as artificial intelligence, Internet of Things and autonomous driving, and the development of these applications will drive demand for DRAM.

In fact, Samsung and SK Hynix have suspended their expansion plans due to the decline in memory prices this year. Micron’s recent expansion plans have been launched simultaneously, with the goal of increasing market share through adequate capacity and state-of-the-art processes in the early stages of industry recovery.