Micron Technology is accelerating the comprehensive build-out of its high-bandwidth memory (HBM) and next-generation DRAM production systems across Asia. From the dual-facility expansion in Tongluo, Taiwan, to a new multi-trillion yen investment in a plant in Hiroshima, Japan, and the official opening of an assembly and test base in Gujarat, India, the U.S. memory chip giant is advancing its capacity layout across multiple Asian locations at a remarkable pace.
On March 15, Micron announced the formal completion of its acquisition of Powerchip Semiconductor Manufacturing Co.'s (PSMC) P5 facility in Tongluo, simultaneously disclosing plans to commence a second-phase construction project within the same campus. This expansion will add approximately 270,000 square feet of cleanroom space, primarily focused on next-generation DRAM production, including HBM. Construction is expected to begin by the end of the 2026 fiscal year. According to Reuters, this dual-facility strategy marks a new phase in Micron's expansion within Taiwan.
Concurrently, the expansion project at Micron's Hiroshima plant in Japan entered the land development stage in early March, progressing faster than initially anticipated. The total investment is approximately 1.5 trillion yen, with the Japanese government committing up to 536 billion yen in subsidies. Additionally, Micron's first advanced packaging and test factory in Sanand, India, officially opened on February 28. At full capacity, it is expected to contribute approximately 10% of Micron's global output.
The parallel advancement of these three projects reflects Micron's strategic logic to capture HBM market share and diversify supply chain risks through a multi-regional footprint, against a backdrop of robust growth in AI-driven memory demand. Spanning multiple fiscal years from construction initiation to production ramp-up, the combined effect of capital expenditure pressures and government subsidies will remain a key variable for investors to monitor.
**Tongluo Dual Facilities: Acquisition Finalized, Second Phase Planned** According to a Micron press release, the acquired Tongluo P5 facility currently features approximately 300,000 square feet of 300mm wafer cleanroom space. The company plans to support volume product shipments as early as fiscal year 2028, with renovation work on the existing cleanroom having commenced this month. Micron stated that this facility will serve as an extension of its Taichung vertically integrated super-fab complex, with the two sites located approximately 15 miles apart. Reportedly, Micron's operations in Taiwan are centered in Taichung, with supporting facilities in Linkou and a test facility in Tainan.
Alongside the acquisition completion, Micron disclosed its second-phase expansion plan: constructing a second factory of similar scale within the Tongluo campus, adding roughly 270,000 square feet of cleanroom space. Construction is expected to start no later than the end of fiscal year 2026, primarily dedicated to next-generation DRAM production, including HBM.
**Hiroshima Acceleration: Land Development Underway, Backed by Major Subsidies** According to reports from Yahoo Japan citing Hiroshima Television, land development work on a plot west of Micron's Hiroshima plant began in early March. The project covers an area of approximately 9.5 hectares, with on-site signage indicating construction will continue until February 2028.
Citing informed sources, the reports indicated that Micron plans to invest around 1.5 trillion yen to mass-produce next-generation DRAM and AI-optimized high-performance memory in Hiroshima by fiscal year 2029. Japan's Ministry of Economy, Trade and Industry will provide subsidies of up to 536 billion yen. Previous reports from Nikkei had suggested Micron originally planned to break ground formally within the Higashihiroshima campus in May 2026, targeting the start of HBM chip shipments around 2028. Recent reports from Japanese media indicate the project's actual progress has exceeded initial expectations.
On February 28, Micron officially inaugurated its first advanced packaging and test (ATMP) factory in Sanand, Gujarat, India. According to the Business Standard, at full capacity, the plant could account for approximately 10% of Micron's total global output, supplying both the domestic Indian market and international customers, representing a significant new node in Micron's Asian production footprint.
Comments