Micron Shares Jump on Taiwan Factory Acquisition and Earnings Catalyst

Micron's stock price surged 6% on the announcement of a Taiwan factory acquisition and a looming earnings catalyst. The catalyst is driven by AI-driven HBM demand, which has fueled a rally in the company's stock price. The rally also has Micron considering the development of a second memory chip site in Taiwan.

MU shares surged approximately 5% to $426.13 after the company announced the acquisition of Powerchip Semiconductor Manufacturing Corporation's P5 site in Tongluo, Taiwan, for $1.8 billion. The deal adds roughly 300,000 square feet of cleanroom space dedicated to DRAM and High-Bandwidth Memory (HBM) production, with meaningful shipments from the facility expected by fiscal 2028.

The acquisition comes ahead of Micron's Q2 earnings report on March 18, where analysts expect record revenue of approximately $18.7 billion — representing over 130% year-over-year growth. Consensus EPS estimates sit near $8.61, driven by AI-fueled HBM demand that has left Micron's 2026 capacity completely sold out with orders stretching into 2027.

A second facility at Tongluo is planned to begin construction by the end of fiscal 2026, doubling down on Micron's HBM capacity expansion as competitors SK Hynix and Samsung race to capture share in the AI memory market. The Taiwan factory investment, while concentrating more production in a geopolitically sensitive region, reflects the urgency of the HBM supply buildout as Meta, Google, and other hyperscalers accelerate AI infrastructure spending.