Micron Technology has signed an exclusive letter of intent to acquire Powerchip Semiconductor Manufacturing Corp.’s P5 fabrication site in Tongluo, Taiwan, in a deal valued at $1.8 billion in cash. The deal would give Micron an existing 300mm cleanroom footprint of roughly 300,000 square feet, providing additional space to equip and ramp DRAM production as the company seeks to meet rising global demand for memory.
The Tongluo site is located in Miaoli County, near Micron’s existing operations in Taichung, which Micron said should enable operational synergies across its Taiwan manufacturing network. The company expects to assume ownership and control of the facility after closing, then add equipment and scale output in phases.
Micron said the deal is expected to close by calendar Q2 2026, subject to final agreements and required regulatory approvals. As part of the planned transition, PSMC would relocate its Tongluo operations over an agreed period of time.
In parallel with the acquisition, the letter of intent outlines plans for a longer-term strategic relationship between the companies. Micron said it intends to work with PSMC on post-wafer assembly processing, while also supporting PSMC’s legacy DRAM portfolio.
Micron expects the additional capacity enabled by the Tongluo site to begin contributing meaningful DRAM wafer output in the second half of calendar 2027, aligning with its broader global expansion efforts to support long-term customer demand, including growth tied to AI and other compute-intensive applications.
KEY QUOTES:
“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. The Tongluo fab’s close proximity to Micron’s Taichung site will enable synergies across our Taiwan operations.”
Manish Bhatia, Executive Vice President Of Global Operations, Micron Technology
