Micron Technology (MU) has signed a $1.8 billion letter of intent to acquire a major semiconductor fabrication site in Taiwan as it accelerates capacity expansion to meet surging global demand for memory chips.
The company says it has entered into an exclusive agreement to purchase Powerchip Semiconductor Manufacturing Corporation’s (PSMC) P5 fabrication site in Tongluo, Miaoli County, Taiwan.
The deal includes an existing 300mm fabrication facility with roughly 300,000 square feet of cleanroom space.
Micron says the acquisition is designed to expand its DRAM manufacturing footprint and strengthen its position in a market where demand continues to exceed supply. The company also plans to establish a long-term strategic relationship with PSMC tied to post-wafer assembly processing and support for PSMC’s legacy DRAM products.
Says Manish Bhatia, executive vice president of global operations at Micron Technology,
“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. The Tongluo fab’s close proximity to Micron’s Taichung site will enable synergies across our Taiwan operations.”
Micron says the transaction is expected to close in calendar Q2 2026, subject to final agreements and regulatory approvals. Once completed, Micron will assume full ownership and control of the P5 site and begin equipping and ramping DRAM production in phases, while PSMC relocates its Tongluo operations over a defined period.
The company expects the acquisition to begin contributing meaningful DRAM wafer output in the second half of calendar 2027. Micron says the deal fits into its broader global expansion strategy as customers increase demand across data centers, AI workloads and advanced computing applications.
The announcement comes as MU has surged sharply over the past year. The stock is up roughly 325% year over year, rising from $84.98 in January 2025 to about $362 as of Friday’s close, reflecting investor optimism around the memory cycle and AI-driven demand.
It also arrives as AI enters the inference era, where large language models must make predictions on new, unseen data at scale, a process that places heavy demands on both compute and memory. As a result, frontier models are increasingly relying on memory to serve real-time responses, retain larger context windows and support always-on applications that require constant data movement rather than one-time training runs.
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