Micron's $1.8B Taiwan Fab Acquisition: Strategic Move to Boost DRAM Production Capacity

ZKProofster · 2026-01-21T01:02:45+00:00

Micron Technology plans a $1.8 billion expansion in Taiwan by acquiring PSMC's P5 fabrication site. This move aims to boost DRAM production and enhance its supply chain, with operations expected to begin in late 2027.

ZKProofster

2026-01-21 01:02:45

Abstract generation in progress

Micron Technology has moved forward with a major expansion into Taiwan’s semiconductor manufacturing landscape. The company has inked an exclusive Letter of Intent to acquire PSMC’s P5 fabrication site located in Tongluo, Miaoli County, coming in at a total investment of US$1.8 billion in cash.

Facility Details and Production Scope

The acquisition brings Micron control over an existing 300mm fab equipped with a substantial 300,000 square foot cleanroom—a critical infrastructure for advanced memory chip production. This fab acquisition serves a dual strategic purpose: it enables Micron to ramp up DRAM wafer manufacturing and establishes a framework for Micron to provide post-wafer assembly processing services to PSMC while supporting the latter’s legacy DRAM operations.

Timeline and Implementation Plan

The transaction is slated for completion by Q2 2026, contingent on finalizing deal agreements and securing necessary regulatory clearances. Following the close, Micron will take full operational control of the facility. The company plans a phased approach to equip and scale up DRAM production, with PSMC gradually transitioning its Tongluo operations away from the site.

Production milestones indicate that Micron anticipates meaningful DRAM wafer output from this fab to commence in the second half of 2027, positioning the facility as a near-term contributor to the company’s memory supply chain.

Strategic Significance

This fab acquisition underscores Micron’s commitment to addressing escalating global demand for memory solutions amid geopolitical supply chain concerns. By securing manufacturing capacity in Taiwan, a strategic hub for semiconductor production, Micron reinforces its position in the DRAM market and diversifies its production footprint.

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