March 19, 2026 /SemiMedia/ — Micron Technology said it plans to build a second chip plant in the Taiwan region at the Tongluo P5 site it recently acquired from Powerchip Semiconductor Manufacturing Corp., as it looks to expand output of DRAM products, including high-bandwidth memory used in AI systems.

The deal for the site has been completed, and the new plant will be built at the same location. The size of the facility is expected to be similar to Micron’s existing fab in Miaoli.

Demand for AI servers has been driving strong interest in HBM, pushing memory makers to add capacity. The new fab will support Micron’s advanced DRAM products and help it meet demand from data center and AI customers.

In January, Micron agreed to buy the Tongluo P5 site for about $1.8 billion. The two sides will also work together on backend processes such as packaging and assembly, while Micron will continue to support Powerchip’s legacy DRAM business.

Construction of the new fab is expected to begin toward the end of Micron’s fiscal 2026.