Micron plans $1.8 billion cash acquisition of Powerchip’s P5 fabrication plant in Taiwan, boosting manufacturing footprint.
Shares of Taiwan based Powerchip Semiconductor Manufacturing Corp jumped nearly 10% after US memory chipmaker Micron Technology said it would buy a fabrication plant from the company for 1.8 billion dollars in cash.
Micron said that it had signed a letter of intent to acquire Powerchip’s P5 fabrication facility located in Tongluo, Miaoli County, Taiwan. The transaction is expected to close by the second quarter of 2026, subject to regulatory approvals.
The acquisition is aimed at expanding Micron’s production capacity for dynamic random access memory wafers, with output expected to begin in the second half of 2027. The purchase will add around 300,000 square feet of cleanroom space, a highly controlled environment essential for chip manufacturing. Micron said the additional capacity would allow it to ramp up production in phases at a time when global demand for memory chips continues to exceed supply.
Powerchip is one of Taiwan’s semiconductor foundries and manufactures both legacy and memory chips. As part of the deal, Powerchip said Micron will establish a long term foundry relationship with the company for advanced packaging wafer manufacturing and will also support efforts to enhance Powerchip’s specialty memory process technologies.
Micron is one of only three major suppliers of memory chips used in artificial intelligence applications, alongside Samsung Electronics. Micron chief executive Sanjay Mehrotra said last month that memory markets are expected to remain tight beyond 2026.
Micron has operated in Taiwan for more than 30 years and is the island’s largest foreign direct investor. Its facilities in Taichung serve as a key production hub for memory products.
