Micron Technology signed an exclusive letter of intent to acquire Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site in Tongluo, Miaoli County, Taiwan, for US$1.8 billion in cash. The deal adds roughly 300,000 square feet of 300 mm cleanroom space and strengthens Micron’s ability to scale DRAM output as global memory demand continues to rise.
The transaction also sets the framework for a long-term strategic partnership. Under the LOI, Micron and PSMC plan to collaborate on post-wafer assembly processing, while Micron supports PSMC’s legacy DRAM portfolio. The Tongluo site sits near Micron’s existing Taichung operations, enabling operational synergies across its Taiwan manufacturing base.
Micron expects the transaction to close by calendar Q2 2026, subject to definitive agreements and regulatory approvals. After closing, Micron plans to equip the fab and ramp DRAM production in phases, with initial meaningful wafer output targeted for the second half of calendar 2027 as PSMC relocates its Tongluo operations.
- Purchase price: US$1.8 billion, all-cash
- Asset: 300 mm DRAM fab with ~300,000 sq ft (≈27,900 m²) of cleanroom space
- Location: Tongluo, Miaoli County, Taiwan
- Strategic scope: DRAM capacity expansion plus post-wafer assembly partnership with PSMC
- Timeline: Expected close by Q2 2026; DRAM output ramp beginning H2 2027
“This strategic acquisition of an existing cleanroom complements our current Taiwan operations and will enable Micron to increase production and better serve our customers in a market where demand continues to outpace supply,” said Manish Bhatia, executive vice president of global operations at Micron Technology. “The Tongluo fab’s close proximity to Micron’s Taichung site will enable synergies across our Taiwan operations.”
🌐 Analysis
Micron continues to prioritize capacity expansion through a mix of greenfield investments and targeted acquisitions, following recent commitments in the U.S. and Asia to support AI-driven memory demand. The Tongluo acquisition mirrors broader industry moves by DRAM peers to secure advanced cleanroom capacity in Taiwan, where proximity to ecosystem partners and skilled labor remains a competitive advantage.
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