Micron Moves to Expand Taiwan Fab Footprint With $1.8B PSMC Acquisition

Micron Technology has taken a significant step to bolster its manufacturing capacity in Asia by securing an exclusive Letter of Intent to acquire PSMC’s P5 fabrication facility located in Tongluo, Miaoli County, Taiwan. The transaction, valued at $1.8 billion in cash, marks a strategic expansion of Micron’s semiconductor production capabilities in one of the world’s critical chip manufacturing hubs.

Key Details of the Fab Acquisition

The deal encompasses a state-of-the-art 300mm fabrication plant featuring 300,000 square feet of cleanroom space. This existing fab infrastructure positions Micron to rapidly scale up its memory production operations without the lengthy construction timelines typically associated with building new facilities from scratch. The acquisition reflects Micron’s commitment to meeting surging global demand for memory solutions across various end-markets.

Strategic Partnership Framework

Beyond the asset purchase, the Letter of Intent establishes a long-term collaboration between Micron and PSMC. The arrangement includes provisions for Micron to utilize PSMC’s post-wafer assembly processing capabilities, creating an integrated supply chain advantage. Additionally, Micron will support PSMC in maintaining its legacy DRAM portfolio, demonstrating a cooperative approach to the transition.

Timeline and Implementation

The acquisition is expected to reach completion by the second quarter of 2026, contingent upon finalizing definitive agreements and securing all necessary regulatory clearances. Following closure, Micron will assume full operational control of the P5 facility and begin a phased equipment installation and production ramp-up process. PSMC will gradually relocate its Tongluo operations during this transition period to accommodate the changeover.

Production Outlook

Micron anticipates the newly acquired fab will begin generating meaningful DRAM wafer production output starting in the second half of 2027. This timeline allows sufficient runway for equipment deployment, process qualification, and manufacturing scale-up, positioning the facility as a critical contributor to Micron’s global memory supply chain.