Micron expands AI memory production to address shortages through 2028

Micron signed a letter of intent to acquire the Tongluo/Taiwan memory site. It will also start a strategic partnership with PSMC to expand high-bandwidth memory (HBM) capacity. Bloomberg and Barron's report the plant's value at about $1.8 billion. Micron says the moves will boost supply for customers building AI accelerators (sources: 1,2,3).

HBM demand is rising as model sizes and inference workloads grow. Micron executives told investors and partners they expect tight HBM supply through 2028. Analysts cited by MarketWatch say Micron's revenue profile could accelerate sharply as a result (sources: 1,2,4).

The plant purchase signals Micron is prioritizing near-term capacity instead of waiting for third-party expansions. IT and infrastructure teams should expect longer lead times and price pressure for HBM-equipped accelerators. Plan procurement and architecture decisions accordingly to avoid project delays (sources: 1,2,3,4).

Why It Matters

• Expect longer lead times and higher prices for HBM-equipped GPUs; adjust budgets and procurement timelines now.
• Negotiate multi-quarter supply agreements or diversify memory sources to reduce risk of delays.
• Have model and system architects evaluate bandwidth-saving techniques (tensor sharding, activation compression, lower-precision formats) to reduce HBM dependence and cost.