Micron Technology signed an exclusive Letter of Intent (LOI) to acquire the P5 fabrication site from Powerchip Semiconductor Manufacturing Corporation (PSMC). Micron will pay $1.8 billion in cash for the facility, located in Tongluo, Taiwan. The purchase includes an existing 300mm cleanroom.
This strategic purchase aims to increase production capacity. The move addresses growing global demand for memory solutions, which continues to outpace supply. Micron expects the Tongluo fab's proximity to its existing Taichung site to create operational synergies.
The transaction is anticipated to close by the second quarter of 2026, pending regulatory approvals. Following the acquisition, Micron will equip the site to ramp up DRAM production in phases.
The company expects the new facility to begin contributing meaningfully to its DRAM wafer output in the second half of calendar 2027. This expansion complements Micron's broader global growth plans.