Micron rises after closing acquisition of PSMC’s Tongluo P5 site, plans to nearly double clean room manufacturing space
Micron rose 4% in premarket trading on Monday after the memory manufacturer announced that it had closed the acquisition of Powerchip Semiconductor Manufacturing Corporation’s (PSMC) P5 site in Tongluo, Taiwan, which had been announced in mid-January.
The rally comes amid big gains for the other big high-bandwidth memory (HBM) chip companies. South Korea’s Samsung and SK Hynix rose 2.8% and 7%, respectively, on Monday.
In addition to the closing of the deal, Micron plans to begin “construction of a similar-sized second cleanroom at this site by the end of fiscal 2026.” That will add approximately 270,000 square feet of space, in addition to a retrofitting of the existing clean room, at roughly 300,000 square feet, to begin in March, per the company’s press release.
The expansion plans will therefore almost double the site’s clean room space — rooms that are specifically engineered to minimize potential contaminants and regulate variables like temperature, moisture, and pressure, which is essential to the production of microscopic chips.
Both clean rooms at the new site will act as an extension of Micron’s vertically integrated mega campus in Taichung, located some 15 miles away from the site, to expand its supply of DRAM products, including HBM, to support surging AI demand.
The Tongluo site, as a whole, is expected to meaningfully support Micron’s shipments starting fiscal 2028, as the company continues to scale up in Asia to meet its memory demand.
