Micron Technology (NASDAQ:MU) has entered into an exclusive Letter of Intent to acquire the P5 semiconductor fabrication plant owned by Powerchip Semiconductor Manufacturing Corporation in Taiwan for $1.8 billion in cash.
The transaction covers a 300,000-square-foot cleanroom facility located in Tongluo, Miaoli County, and is intended to support Micron’s efforts to expand capacity as global demand for memory products continues to exceed supply, the company said on Friday.
“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.
The acquisition is expected to be completed by the second quarter of 2026, subject to regulatory approvals. Following completion, Micron will assume ownership of the P5 site, install equipment and progressively ramp up DRAM manufacturing, while PSMC transitions its existing activities over an agreed period.
Micron expects the facility to begin contributing a meaningful volume of DRAM wafer output from the second half of 2027.
The Letter of Intent also outlines a longer-term partnership between Micron and PSMC, covering post-wafer assembly services as well as ongoing support for PSMC’s legacy DRAM products.
Micron added that the Tongluo plant’s close proximity to its Taichung operations should deliver operational efficiencies across its Taiwan footprint. The move forms part of Micron’s broader global expansion strategy aimed at meeting sustained long-term customer demand.