Market speculation has been swirling that global memory giant Micron is evaluating a potential acquisition of PSMC’s new 12-inch fab in Tongluo, Miaoli, Taiwan. According to Commercial Times, PSMC says it is in ongoing discussions with multiple potential partners, though any cooperation remains at the discussion stage. As the report indicates, these talks are not limited to a “fab acquisition,” but also include other structures such as strategic alliances and technology cooperation. The company adds that before any agreement is finalized, it will continue to advance expansion plans at the Tongluo fab, including capacity investments in silicon interposers and 3D IC technologies.

Tongluo Fab Gains Spotlight for Capacity Expansion Potential

The Tongluo fab is one of PSMC’s key investments in recent years. As the report notes, the site is planned to host three 12-inch wafer fabs, each with a monthly capacity of about 40,000 wafers, for a combined total of up to 120,000 wafers per month at full utilization. As the report highlights, construction of the first fab building has been completed, but installed capacity currently stands at only around 8,000 wafers per month. The facility remains in the market introduction and customer mass-production qualification phase and has yet to reach economic scale.

Industry sources cited by the report say the Tongluo fab has attracted market attention precisely because it is a newly built 12-inch facility with significant expansion potential. Compared with existing production lines, a new fab offers greater strategic flexibility, allowing potential partners to scale investment gradually based on demand.

For now, PSMC is planning new products at the Tongluo fab. According to the report, capacity for silicon interposer–related production lines stands at around 2,500 wafers per month and is currently fully utilized, with further expansion already planned. Meanwhile, 3D AI stacking technologies remain in the validation and customer proof-of-concept stage and are positioned as part of the company’s mid- to long-term development roadmap.

Geopolitics and Capacity Considerations Drive Speculation

As for the factors shaping market speculation around potential partners for PSMC’s Tongluo fab, institutional investors cited by the report say geopolitical tensions and supply-chain diversification efforts are driving global memory makers to seek “non-China” capacity, with Taiwan emerging as an attractive option. As the report points out, Micron’s Taiwan operations are centered in Taichung, and the company has HBM production capacity in Taiwan, giving it an established manufacturing footprint and comprehensive technical support infrastructure.

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(Photo credit: I Domain Industrial)