Micron Technology has agreed to acquire a semiconductor fabrication facility in Taiwan for US$1.8 billion, a move aimed at significantly expanding its dynamic random-access memory (DRAM) production capacity as global demand accelerates on the back of artificial intelligence workloads.
The acquisition, disclosed on January 19, positions the US-based memory chipmaker to respond more aggressively to surging requirements from data centres, cloud service providers and AI hardware manufacturers, where high-performance and high-bandwidth memory have become critical components of modern computing systems.
Micron said the Taiwanese fabrication site will be integrated into its existing manufacturing network and repurposed to support advanced DRAM production. While the company has not disclosed the identity of the seller, industry analysts note that Taiwan remains a strategic hub for semiconductor manufacturing due to its deep talent pool, mature supply chains and close proximity to major electronics and data-centre customers across Asia.
The deal comes at a time when global DRAM markets are tightening following years of production discipline and underinvestment across the memory sector. The rapid adoption of AI training and inference workloads has sharply increased demand for memory-intensive systems, pushing DRAM back to the centre of data-centre performance considerations. Research firms including TrendForce and Gartner have forecast strong double-digit growth in global DRAM revenues through 2026, driven largely by AI servers, high-performance computing and next-generation consumer electronics.
Micron has repeatedly identified AI as a core driver of its long-term growth strategy. In recent earnings briefings, the company noted that AI-related demand now accounts for a growing share of its data-centre revenue, particularly through high-bandwidth memory used alongside advanced graphics processing units and AI accelerators. As model sizes and computational complexity increase, memory bandwidth and capacity have become key constraints, elevating the strategic importance of DRAM suppliers.
The acquisition also fits into Micron’s broader global investment push, which includes major expansion projects in the United States, Japan and India. The company is among the beneficiaries of government incentives under the US CHIPS and Science Act, designed to bolster domestic semiconductor manufacturing and reduce supply-chain vulnerabilities. By securing additional capacity in Taiwan, Micron is seeking to balance geographic diversification with the need for near-term production scale, allowing it to meet customer demand while longer-term greenfield projects are developed.
From a competitive standpoint, the move strengthens Micron’s position against rivals such as Samsung Electronics and SK Hynix, both of which have ramped up investments in advanced memory technologies, particularly high-bandwidth memory for AI systems. SK Hynix has emerged as a leading supplier to major AI chipmakers, increasing competitive pressure on Micron to accelerate capacity expansion and technological upgrades. Analysts view the $1.8 billion purchase as a cost-effective way to add capacity quickly, compared with the significantly higher costs and longer timelines associated with building a new fabrication plant from scratch.
Beyond Micron, the transaction highlights how artificial intelligence is reshaping capital allocation across the semiconductor industry. After several years in which logic chips and foundry capacity dominated investment flows, memory has re-emerged as a strategic priority. As AI models become larger and more data-intensive, the availability of high-performance DRAM is increasingly seen as a critical factor in overall system efficiency and scalability.
For Taiwan, the deal reinforces its continued importance within the global semiconductor ecosystem, even as companies seek to diversify manufacturing locations amid geopolitical tensions and supply-chain resilience concerns. Micron said the acquisition is expected to close later in 2026, subject to regulatory approvals and customary closing conditions.
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