From India to Japan to Taiwan, Micron builds new HBM base in Asia

# Zhang Yaqi

Source: Wall Street Insights

Micron Technology has recently completed the acquisition of its Tonglu site in Taiwan, China and launched Phase II expansion, focusing on next-generation DRAM. Meanwhile, the trillion-yen new plant in Hiroshima, Japan has entered land development ahead of schedule with massive government subsidies. The company’s first advanced packaging and testing base in India has also officially opened. The three projects are being implemented in parallel to pursue vertical integration and risk diversification amid strong AI memory demand, while facing cross-fiscal-year capital expenditure pressure.

Micron Technology is accelerating the construction of a high-bandwidth memory (HBM) and next-generation DRAM production system across Asia. From the dual-fab expansion in Tonglu, Taiwan, China, to the trillion-yen new investment in Hiroshima, Japan, and the official opening of the packaging and testing base in Gujarat, India, the U.S. memory chip giant is advancing capacity deployment at multiple Asian locations simultaneously at an unusual pace.

On March 15, Micron announced the completion of its acquisition of PSMC’s Tonglu P5 fab, and simultaneously disclosed plans to launch the second phase of construction at the same campus, adding approximately 270,000 square feet of cleanroom space, mainly for next-generation DRAM production including HBM. Construction is expected to begin by the end of fiscal 2026. According to Reuters, this dual-fab arrangement marks a new stage in Micron’s expansion in Taiwan, China.

At the same time, the expansion project of the Hiroshima plant in Japan entered land development in early March, progressing faster than initially expected. The total investment amounts to approximately 1.5 trillion yen, with the Japanese government pledging up to 536 billion yen in subsidies. Micron’s first advanced packaging and testing (ATMP) plant in Sanand, India officially opened on February 28. Once at full capacity, it will account for roughly 10% of Micron’s global output.

The launch of the three projects in parallel reflects Micron’s strategic logic of competing for HBM market share and diversifying supply chain risks through multi-regional deployment amid surging AI memory demand. With construction and ramp-up spanning multiple fiscal years, the combined effect of capital expenditure pressure and government subsidies will be a key variable for investors to monitor.

## Tonglu Dual Fabs: Acquisition Completed, Phase II Scheduled

According to Micron’s press release, the acquired Tonglu P5 fab has approximately 300,000 square feet of 300mm wafer cleanroom space. The company plans to support high-volume product shipments as early as fiscal 2028, with retrofitting of the existing cleanroom having started this month. Micron said the site will serve as an extension of its Taichung vertically integrated mega-campus, with the two facilities about 15 miles apart.

Upon completing the acquisition, Micron unveiled its Phase II expansion: a second fab of similar scale at the Tonglu campus, adding about 270,000 square feet of cleanroom space. Construction is set to begin no later than the end of fiscal 2026, mainly for next-generation DRAM including HBM.

## Hiroshima Accelerated: Land Development Underway, Hundreds of Billions in Subsidies

According to Yahoo Japan citing Hiroshima TV, land development on the west side of Micron’s Hiroshima plant started in early March, covering about 9.5 hectares, with construction signage indicating the project will continue through February 2028.

Sources cited in the report said Micron plans to invest approximately 1.5 trillion yen to mass-produce next-generation DRAM and high-performance AI memory in Hiroshima by fiscal 2029, with Japan’s Ministry of Economy, Trade and Industry providing up to 536 billion yen in subsidies. The project is now ahead of the original schedule.

## India’s First Advanced Packaging & Testing Base Opens

Micron officially opened its first advanced packaging and testing (ATMP) plant in Sanand, Gujarat, India on February 28. At full capacity, the plant will account for roughly 10% of Micron’s global output, supplying both the Indian domestic and international markets, becoming an important new node in Micron’s Asian capacity footprint.

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