Memorychip maker Micron Technology Inc has submitted a new plan for expansion in Taichung to meet future DRAM demand for next-generation 5G technology, a Central Taiwan Science Park (中部科學園區) Bureau official said yesterday.
“We are aware of Micron’s new investment plan to build [fab] A5,” the official told the Taipei Times by telephone. “The company has submitted its capacity expansion project to the bureau.”
The US company plans to build a new DRAM fab on the site it acquired from bankrupt touch sensor maker Cando Corp (達鴻) in 2017, the official said, but declined to disclose details about the plan.
The official’s comments came in response to questions about a report by the Chinese-language Economic Daily News, which said Micron would invest a total of NT$400 billion (US$12.72 million) on new two fabs — A3 and A5.
The report said the company also plans to install a monthly capacity of 60,000 wafers at the A5 fab — at a time when oversupply continues to erode chip companies’ profitability.
However, a Micron official yesterday dismissed the report, saying the company has not reached a final decision about the A5 fab.
The Micron official, speaking on condition of anonymity, said it made no sense to boost capacity amid a supply glut, but added that it is normal for technology companies to constantly scout new land for potential expansion.
However, the official confirmed that the A3 fab is under construction and would become operational in the fourth quarter of next year.
The investment plan is focused on cleanroom space expansion and technology upgrade, she said.
There would be no significant capacity increase when the fab is completed, she said.
Micron plans to use the new fab to produce DRAM chips on 1z-nanometer process technology, the most advanced in the industry and upgrade from 1x-nanometer technology.
On Aug. 15, Micron announced that it had made a stride in DRAM scaling, making it the first in the world to start mass production of 16Gb DDR4 products using 1z-nanometer process technology.
The 1z-nanometer technology is suitable for memory chips used in a wide range of applications, including artificial intelligence, autonomous vehicles, 5G, mobile devices, graphics, gaming, network infrastructure and servers, given its balance between performance and power consumption, Micron said.
It declined to disclose the investment amount for the A3 fab.
Micron operates two 12-inch fabs, A1 and A2, in Taoyuan and Taichung, and one 3D DRAM packaging fab in Taichung, employing nearly 8,000 workers.
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