Micron Technology (NASDAQ:) shares are surging in premarket trading on Monday after the U.S. memory chipmaker announced plans to build a second manufacturing facility at its newly acquired Tongluo site in Taiwan, while also confirming the completion of its acquisition of Powerchip Semiconductor Manufacturing Corporation’s (PSMC) P5 site. The announcements come ahead of the company’s Q2 FY2026 earnings call scheduled for March 18, fueling investor enthusiasm around Micron’s aggressive capacity expansion strategy.
With AI-driven demand for high-bandwidth memory (HBM) and leading-edge DRAM continuing to accelerate, Micron’s latest moves signal a major step forward in its global manufacturing ambitions. The back-to-back announcements, acquisition completion and second facility plans, have sent MU shares climbing sharply, extending what has already been a remarkable run for the stock.
Micron’s Taiwan Expansion: A Two-Phase Growth Blueprint
Micron officially completed its acquisition of PSMC’s P5 site in Tongluo, Miaoli County, Taiwan on March 15, 2026, finalizing a deal first announced on January 17, 2026, for a purchase price of US$1.8 billion. The site includes approximately 300,000 square feet of existing 300mm cleanroom space and will serve as an extension of Micron’s vertically integrated mega campus in Taichung, located roughly 15 miles away.
Retrofitting of the existing cleanroom began in March, with meaningful product shipments from the facility expected to commence in fiscal year 2028. The Tongluo site is strategically positioned to bolster Micron’s supply of leading-edge DRAM products, including high-bandwidth memory, as demand from AI infrastructure continues to surge.
Beyond the initial retrofit, Micron wasted no time in unveiling Phase 2 of its Tongluo strategy: construction of a second facility of comparable scale is set to begin by the end of fiscal 2026, adding approximately 270,000 square feet of additional cleanroom space. As part of the broader agreement, PSMC will collaborate with Micron on joint development of HBM and post-wafer-finish foundry services, as well as advanced memory process technologies.
PSMC chairman Frank Huang noted that his company will also assist Micron in accelerating the installation of advanced DRAM production lines within the Tongluo cleanrooms. Micron EVP of Global Operations Manish Bhatia described the Tongluo facility as “a critical component of our global expansion plans,” emphasizing that memory is a strategic asset directly tied to AI product performance.
MU Stock Brief: Premarket Move and Key Metrics
Micron shares were trading at $445.35 in premarket as of 7:16 AM EDT on March 16, 2026 — a gain of $19.22, or approximately 4.51%, building on Friday’s close of $405.35 and an intraday session high of $429.35. The premarket move extends an already extraordinary performance streak for MU: the stock is up approximately 49.30% year-to-date, vastly outpacing the S&P 500’s decline of 3.12% over the same period.
On a one-year basis, MU has surged over 350%, compared to the broader market’s roughly 20% gain, reflecting a dramatic re-rating of Micron’s growth prospects in the AI memory era. Volume is running above average, with over 39 million shares traded, against an average daily volume of approximately 35.3 million.
From a valuation standpoint, MU carries a market cap of approximately $479.6 billion, a trailing P/E of 40.47, and a notably low forward P/E of 13.30, suggesting the market expects earnings to grow substantially in coming quarters. The company posted Q1 FY2026 revenue of $13.64 billion with earnings of $5.48 billion, beating EPS estimates of $3.96 with an actual of $4.78.
Analyst sentiment remains broadly bullish, with Wedbush maintaining an Outperform rating and raising its price target from $320 to $500 as recently as March 13, while the consensus 1-year price target sits at $426.59. The 52-week range of $61.54 to $455.50 underscores how dramatically the stock has re-priced as Micron’s HBM and AI memory narratives have taken center stage heading into its Q2 FY2026 earnings call on March 18.
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