Micron Technology Inc. (NASDAQ:MU) is expanding its manufacturing footprint in Taiwan as the memory-chip maker increases capacity to meet rising demand for artificial intelligence hardware.

Micron Acquires Taiwan Fab To Boost DRAM Output

The company said on Sunday it has closed its purchase of Powerchip Semiconductor Manufacturing Corporation’s P5 manufacturing location in Tongluo, Taiwan, giving Micron full ownership of the facility.

The transaction follows an agreement Micron previously disclosed on January 17, 2026.

Micron said the Tongluo location is positioned to work alongside its existing Taiwan footprint and connect to its larger Taichung mega campus.

Facility To Support Next-Generation AI Memory

The deal matters because Micron is tying the site to a longer-term plan to boost output of advanced DRAM, including high-bandwidth memory used in AI systems.

Micron said the Tongluo property sits roughly 15 miles from Taichung and is intended to function as an add-on to its vertically integrated manufacturing setup in the region.

The company described the acquired site as having about 300,000 square feet of 300mm cleanroom space already in place.

“The Tongluo facility complements our Taiwan operations and is a critical component of our global expansion plans,” said Manish Bhatia, executive vice president of global operations at Micron Technology.

“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.”

“We appreciate the strong collaboration from the Taiwan government, our construction partners, and equipment and materials suppliers to enable and accelerate the ramp of our production capacity at this site.”

Expansion Continues As AI Memory Demand Grows

Micron also plans to build a second facility of similar size at the Tongluo site, adding about 270,000 square feet of additional cleanroom space. The company aims to begin construction by the end of fiscal 2026.

The expansion comes as demand for AI hardware drives competition for high-bandwidth memory used in AI servers.

Last week, Wedbush analyst Matt Bryson maintained an Outperform rating on Micron and raised his price forecast from $320 to $500.

MU Price Action: Micron Technology shares were up 4.25% at $444.25 during premarket trading on Monday. The stock is trading near its 52-week high of $455.50, according to Benzinga Pro data.

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