Catenaa, Sunday, January 18, 2026- Micron Technology has signed a letter of intent to buy a fabrication site in Taiwan from Powerchip Semiconductor Manufacturing for $1.8 billion to expand production.
Micron will take control of the P5 site in Tongluo, Taiwan, and plans to ramp up DRAM production in phases after the transaction closes in the second quarter, the company said in a statement on Saturday.
The companies will also partner on Micron’s post-wafer assembly processing and to support Powerchip in its legacy DRAM portfolio, Micron said.
The investment is part of Micron’s global expansion as it seeks to meet continued demand for memory chips.
The company, which currently makes most of its chips at facilities in Asia, on Friday held a groundbreaking ceremony for a new plant outside Syracuse, New York, having promised last year to invest as much as $200 billion in the US.
The transaction is anticipated to close by calendar Q2 2026, following the closure of deal agreements and the required regulatory approvals.
Upon closing the transaction, Micron assumed 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.
This acquisition complements Micron’s ongoing global expansion plans as the company invests to meet long-term demand from its customers.
