TAIPEI (Taiwan News) — President Lai Ching-te (賴清德) said Thursday that chips and memory are equally critical in the global race to develop artificial intelligence.

Speaking during a meeting with Micron President and CEO Sanjay Mehrotra in Taipei, Lai said Taiwan will expand its advanced high-bandwidth memory (HBM) capacity with Micron’s support, per CNA. He said the partnership will also help Micron narrow the gap with global competitors.

Micron has invested more than NT$1.2 trillion (US$38.19 billion) in Taiwan over the past three decades, Lai said. He thanked the company for placing Taiwan at the center of its global expansion plans.

Lai said Micron received new subsidies late last year under the Ministry of Economic Affairs’ A+ Industrial Innovation R&D Program. The funding will support additional investment over three years and accelerate HBM research and capacity expansion in Taiwan.

Looking ahead, Lai said Taiwan and the US will work closely to strengthen memory technologies essential for AI infrastructure and build a more resilient supply chain.

On Jan. 17, Powerchip announced it had signed an exclusive letter of intent with Micron to sell its 12-inch Tongluo fab for NT$56.55 billion (US$1.8 billion) in cash. The transaction is expected to be completed in the second quarter.

Under the deal, Micron will form a long-term wafer foundry partnership with Powerchip in advanced DRAM packaging. Micron will also assist Powerchip in upgrading specialty DRAM process technologies at its Hsinchu P3 plant.

Since establishing its Taipei office in 1994, Micron has invested in Taiwan for more than 31 years and employs more than 10,000 workers.