Key Moments
- Micron Technology signed an exclusive Letter of Intent to acquire PSMC’s P5 fabrication facility in Taiwan for $1.8 billion in cash.
- The company expects the deal to close by the second quarter of 2026, with meaningful DRAM wafer output anticipated beginning in the second half of 2027.
- The transaction is designed to expand Micron’s Taiwan manufacturing footprint and deepen its long-term collaboration with PSMC on post-wafer assembly and legacy DRAM support.
Transaction Overview
Micron Technology has entered into an exclusive Letter of Intent to acquire the P5 fabrication site in Taiwan from Powerchip Semiconductor Manufacturing Corporation (PSMC) for $1.8 billion in cash, according to a company announcement on Friday.
The P5 facility includes a 300,000 square foot cleanroom located in Tongluo, Miaoli County. Micron intends to use the site to help meet rising worldwide demand for memory products.
Strategic Rationale and Operational Integration
Micron described the transaction as a key step in strengthening its existing footprint in Taiwan. The Tongluo fab is situated close to Micron’s site in Taichung, a factor the company said will support operational efficiencies and synergies across its regional 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.
Upon closing, Micron plans to take control of the P5 site, install equipment, and gradually scale up DRAM production. During this transition, PSMC will move its own operations from the fab over an agreed timeframe.
🚨Has demand reached such a frenzied level? Micron's big move sends a strong signal! 🚨
Micron announced its $1.8 billion acquisition of Taiwan's PSMC wafer fab. Why?
1️⃣ Three gigafactories under construction are insufficient to meet immediate demand.
2️⃣ Existing capacity is… pic.twitter.com/E5Qf55r1Yv— geminitrading (@gemini_edge) January 18, 2026
Timeline and DRAM Output Plans
The companies expect the acquisition to be completed by the second quarter of 2026, subject to regulatory approvals. Following closing and subsequent ramp activities, Micron anticipates that the site will begin delivering meaningful DRAM wafer output in the second half of 2027.
| Item | Detail |
|---|---|
| Buyer | Micron Technology |
| Seller | Powerchip Semiconductor Manufacturing Corporation (PSMC) |
| Asset | P5 fabrication site, Tongluo, Miaoli County, Taiwan |
| Cleanroom size | 300,000 square feet |
| Purchase price | $1.8 billion (cash) |
| Expected closing | By the second quarter of 2026 (subject to regulatory approvals) |
| Expected meaningful DRAM output | Beginning in the second half of 2027 |
Extended Collaboration With PSMC
As part of the Letter of Intent, Micron and PSMC also outlined a long-term partnership. The agreement covers post-wafer assembly processing services that PSMC will provide, as well as support for PSMC’s legacy DRAM portfolio.
Micron indicated that this Taiwan expansion forms one element of a broader global growth strategy focused on satisfying long-term customer demand for memory solutions.
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