Micron Plans $1.8B Taiwan Fab Expansion, Analysts Forecast 13.9% Upside Into 2027
Micron is expanding its Tongluo, Taiwan facility—acquired for $1.8B—to add a 270,000 sq ft cleanroom by late fiscal 2026, boosting DRAM and high-bandwidth memory output for AI. Analysts set an average price target of $508.33, implying 13.9% upside into 2027 based on sold-out high-bandwidth memory capacity.
1. Taiwan Fab Expansion Plans
Micron completed the $1.8 billion acquisition of the Tongluo site in Miaoli County and plans construction of a second 270,000 sq ft cleanroom fab by end of fiscal 2026, with production slated for fiscal 2028.
2. Capacity Growth for AI Memory
The new building will complement the existing 300,000 sq ft of 300 mm cleanroom space, increasing DRAM and high-bandwidth memory output to address growing AI system requirements.
3. Bullish Analyst Outlook
Analysts maintain a bullish stance on Micron into 2027, citing sole U.S. supply of high-bandwidth memory with sold-out capacity through 2026 and setting an average price target of $508.33, implying nearly 14% upside.