Micron to Expand Memory Production with Strategic Taiwan Fab Acquisition

Micron Technology has committed to a major infrastructure investment in the Asia-Pacific region through an exclusive Letter of Intent to purchase Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication facility located in Tongluo, Miaoli County, Taiwan. The deal, valued at US$1.8 billion in cash, represents a significant step in addressing the surging global appetite for memory chip solutions.

Asset Details and Manufacturing Capacity

The acquisition encompasses PSMC’s fully operational 300mm fab with a 300,000 square-foot cleanroom—a critical infrastructure asset for large-scale semiconductor production. This fabrication facility will serve as a cornerstone for Micron’s regional memory manufacturing strategy, enabling the company to bring additional DRAM production capacity online in response to intensifying market demand.

Strategic Partnership Framework

Beyond the acquisition, Micron and PSMC have committed to establishing a comprehensive long-term collaboration. The arrangement includes provisions for Micron’s post-wafer assembly and testing operations at the site, while Micron will simultaneously support PSMC’s ongoing DRAM product lines. This partnership structure ensures continuity for both organizations during the transition phase.

Timeline and Ramp-Up Schedule

The transaction is projected to finalize by the second quarter of 2026, contingent on finalizing transaction agreements and receiving necessary regulatory clearances. Following the closure, Micron will transition to full operational control of the P5 fab. The company plans to implement a phased equipment installation and production ramp schedule. During this period, PSMC will relocate its existing Tongluo operations according to a mutually agreed timeline.

Production Impact and Market Contribution

Industry analysts expect this fab acquisition to meaningfully boost Micron’s DRAM wafer output beginning in the second half of 2027. The expanded manufacturing footprint strengthens the company’s positioning to serve multinational enterprises and data center operators navigating persistently tight memory supplies across multiple end markets.