On January 17, Micron Technology and Powerchip Semiconductor Manufacturing (PSMC) jointly announced a landmark cooperation: Micron will acquire the P5 wafer fab building and infrastructure (excluding production equipment) in Tongluo, Miaoli County, Taiwan, for $1.8 billion in cash. The move will leverage existing facility space to accelerate DRAM supply expansion and initiate a long-term technology partnership between the two companies.
The acquisition centers on a 300‑millimeter wafer fab cleanroom covering 300,000 square feet, located adjacent to Micron’s Taichung site, enabling rapid business synergy. This will help Micron address the global DRAM supply‑demand gap and strengthen its storage solution capabilities. Beyond the asset purchase, the companies have agreed to deeper collaboration: Micron will establish a long‑term DRAM advanced packaging foundry relationship with PSMC and assist PSMC in refining niche DRAM process technology at its Hsinchu P3 fab, creating complementary strengths.
Micron’s Executive Vice President of Global Operations, Manish Bhatia, stated that the strategic acquisition “is an important addition to our Taiwan operations” and will quickly increase capacity to better serve global customers facing excess demand. PSMC Chairman Frank Huang noted that the AI boom is driving a DRAM upcycle, making the Tongluo fab a win‑win pivot—the sale optimizes PSMC’s financial health, while joining Micron’s advanced packaging supply chain and enhancing process technology will accelerate the company’s transition toward the AI sector.
PSMC will fully focus on the AI supply chain, reorganizing its three 12‑inch and two 8‑inch wafer fabs to deepen focus on high‑value‑added products such as 3D AI DRAM and reduce non‑AI business. Internally, PSMC will safeguard production and FAB IP operations by relocating Tongluo personnel and equipment back to its Hsinchu campus, replacing older equipment and low‑margin products to reduce reliance on mature process nodes.
Huang emphasized that the cooperation will enhance Taiwan’s memory technology level and supply‑chain completeness, consolidating its key role in the global semiconductor industry and competitive edge in the AI era. The transaction is expected to close in the second quarter of 2026. Micron will then phase in equipment installation and ramp DRAM capacity, with significant wafer output growth anticipated from the second half of 2027, further strengthening its global memory market presence.
ICgoodFind : Micron’s acquisition quickly bolsters its DRAM capacity, while PSMC pivots toward higher‑value AI segments. Their collaboration is set to reshape the storage and AI supply‑chain landscape, fostering synergistic industry development.
