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Micron Finalizes Taiwan Fab Purchase, Plans Second Tongluo Plant as Shares Rally Before Earnings

The move underscores constrained AI‑memory supply, with 2026 HBM fully allocated.

Overview

  • Micron completed the acquisition of PSMC’s Tongluo P5 site in Miaoli County, gaining roughly 300,000 square feet of 300mm cleanroom space to be retrofitted for DRAM and HBM.
  • The company said the Tongluo retrofit targets meaningful shipments beginning in fiscal 2028 and announced plans for a second similar‑scale facility at the site, with construction slated to start by the end of fiscal 2026.
  • Management has indicated its 2026 HBM output is entirely sold out and that it can meet only about 50%–66% of some key customers’ memory needs, with meaningful new capacity expected from 2027 onward.
  • Ahead of Wednesday’s fiscal Q2 2026 report, Wall Street consensus centers near $19.1 billion in revenue and about $8.6 in EPS, while options markets imply roughly a 10% move in either direction.
  • Shares rose about 5%–6% on the Taiwan expansion news as analysts raised targets — including calls up to $470–$500 — reflecting expectations that AI‑driven DRAM and HBM tightness will support elevated pricing into 2027.