Micron Technology Inc (NASDAQ:MU) announced that it will acquire a major semiconductor fabrication facility in Taiwan from Powerchip Semiconductor Manufacturing Corporation (PSMC) for approximately US$1.8 billion in cash, expanding its memory manufacturing capacity amid rising global demand.
The transaction involves PSMC’s P5 fabrication site located in Tongluo, Miaoli County, Taiwan. Micron has signed an exclusive letter of intent to purchase the site, which includes an existing 300-millimeter wafer fab cleanroom spanning roughly 300,000 square feet.
The deal is expected to close in the second quarter of 2026, subject to the execution of definitive agreements and receipt of regulatory approvals.
Following completion, Micron will take ownership of the site and begin installing tools and preparing the facility for production. The company expects the fab to begin contributing meaningful DRAM wafer output in the second half of 2027.
Micron said the acquisition will expand its manufacturing footprint in Taiwan and help address demand that is currently exceeding supply, particularly for memory used in artificial intelligence and data-center applications.
The Tongluo site is located near Micron’s existing operations in Taichung, which the company said is expected to create operational synergies across its Taiwan manufacturing network.
“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, in a statement. He added that the site’s proximity to Micron’s Taichung facility would support closer integration of operations.
As part of the agreement outlined in the letter of intent, Micron and PSMC also plan to establish a long-term relationship that includes post-wafer assembly processing for Micron and support for PSMC’s legacy DRAM business, with PSMC relocating its existing Tongluo operations over an agreed period.
Following Micron’s announcement, Powerchip’s Taiwan-listed shares rose almost 10%.