US Chip Major Micron To Acquire PSMC’s Taiwan Fab For $1.8 Billion To Expand DRAM Production Capacity

Micron Technology has signed an exclusive letter of intent to acquire Powerchip Semiconductor Manufacturing Corporation's P5 fabrication site in Tongluo, Miaoli County, Taiwan, for $1.8 billion.

The acquisition includes an existing 300mm fab cleanroom of 300,000 square feet and will further position Micron to address growing global demand for memory solutions.

The transaction is likely to close by the second quarter of 2026, following the closure of deal agreements and the required regulatory approvals.

Upon closing the transaction, Micron will assume ownership and control of the P5 site to equip and ramp up DRAM production in phases, with PSMC relocating its Tongluo operations over a specific time.

Micron expects this acquisition to contribute to meaningful DRAM wafer output beginning in the second half of calendar 2027.

Manish Bhatia, executive vice president of global operations at Micron Technology, stated the strategic acquisition complements the company's current Taiwan operations and will enable increased production.

The Tongluo fab's close proximity to Micron's Taichung site will enable synergies across Taiwan operations.

The letter of intent also aims to establish a long-term relationship between Micron and PSMC for Micron's post-wafer assembly processing and to support PSMC in its legacy DRAM portfolio. The Taiwan deal fits into Micron's wider expansion push as demand for memory keeps climbing.

On Friday, Micron held a groundbreaking ceremony near Syracuse, New York, tied to a plan announced last year to invest up to $200 billion across the US. The New York site alone carries a planned $100 billion investment.

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