From India to Japan and then to Taiwan, Micron is building a new HBM base in Asia

Micron Technology is accelerating the construction of high bandwidth memory (HBM) and next-generation DRAM production systems across Asia. From the expansion of its dual plants in Tongluo, Taiwan, to the investment in a new factory in Hiroshima, Japan at the trillion yen level, and the official opening of its packaging and testing base in Gujarat, India, this American memory chip giant is advancing its capacity layout in multiple locations in Asia at an unprecedented speed.

On March 15, Micron announced the completion of its acquisition of the P5 plant in Tongluo from Powerchip Semiconductor Manufacturing Corporation (PSMC) and disclosed that it will initiate the second phase of construction in the same park, adding approximately 270,000 square feet of cleanroom space, primarily for next-generation DRAM production, including HBM. The construction is expected to start before the end of fiscal year 2026. According to Reuters, this dual-plant layout marks a new phase of Micron's expansion in Taiwan.

Meanwhile, the expansion project of the Hiroshima factory entered the land development phase in early March, progressing faster than initially expected, with a total investment of approximately 1.5 trillion yen. The Japanese government has committed to providing up to 536 billion yen in subsidies; the first advanced packaging and testing factory in Sanand, India, was also officially opened on February 28, which is expected to contribute about 10% of Micron's global output when fully operational.

The simultaneous implementation of projects in three locations reflects Micron's strategic logic of competing for HBM market share and diversifying supply chain risks against the backdrop of strong growth in AI storage demand through cross-regional multi-point layouts. The combination effect of capital expenditure pressure and government subsidies will be a core variable of ongoing interest for investors as the timeline from construction initiation to capacity ramp-up spans multiple fiscal years.

Tongluo Dual Plants: Acquisition Completed, Second Phase Construction on Schedule

According to Micron's press release, the acquired P5 plant in Tongluo has approximately 300,000 square feet of 300mm wafer cleanroom, with the company planning to support large-scale product shipments as early as fiscal year 2028. The renovation of the existing cleanroom has already begun this month. Micron stated that this plant will serve as an extension of its Taichung vertically integrated super park, with the two facilities located about 15 miles apart. Reports indicate that Micron's operations in Taiwan are centered in Taichung, with affiliated facilities in Linkou and a testing plant in Tainan.

Alongside the acquisition, Micron disclosed its second-phase expansion plan: a new factory of similar scale will be built within the Tongluo park, adding approximately 270,000 square feet of cleanroom space, with construction expected to start no later than the end of fiscal year 2026, primarily for next-generation DRAM production, including HBM.

Hiroshima Acceleration: Land Development First, Billion-Yen Subsidies Support

According to Yahoo Japan citing Hiroshima Television, the land development project for the site west of Micron's Hiroshima factory began in early March, covering an area of approximately 9.5 hectares, with on-site construction signage indicating that the work will continue until February 2028.

According to insiders cited in the report, Micron plans to invest approximately 1.5 trillion yen to mass-produce next-generation DRAM and AI high-performance memory in Hiroshima before fiscal year 2029, with the Ministry of Economy, Trade and Industry of Japan providing up to 536 billion yen in subsidies. Previously, according to Nikkei News, Micron had originally planned to officially break ground in the Higashihiroshima park in May 2026, aiming to start HBM chip shipments around 2028. Recent reports from Japanese media indicate that the actual progress of the project has exceeded initial expectationsMicron officially opened its first Advanced Packaging and Testing (ATMP) factory in Sanand, Gujarat, India on February 28. According to Business Standard, once fully operational, the factory's capacity will reach about 10% of Micron's total global output, supplying both the domestic Indian market and international markets, making it an important new node in Micron's Asian capacity layout