Strengthening its manufacturing footprint in Asia, Micron Technology has signed a letter of intent to acquire a semiconductor fabrication site in Taiwan from Powerchip Semiconductor Manufacturing for $1.8 billion. The move is aimed at expanding Micron’s DRAM production capacity to meet rising global demand for memory chips.
Under the proposed transaction, Micron will take control of the P5 fabrication site in Tongluo, Taiwan. The company said it plans to ramp up DRAM manufacturing at the facility in phases after the deal closes, which is expected in the second quarter. Micron anticipates that the site will begin contributing meaningful DRAM wafer output in the second half of 2027.
Alongside the acquisition, the two companies will continue to work together. Micron said the partnership will cover post-wafer assembly processing for its products, while also supporting Powerchip in maintaining its legacy DRAM portfolio.
The Taiwan investment forms part of Micron’s broader global expansion strategy as it looks to secure capacity and respond to sustained demand across data centers, consumer electronics, and emerging AI-driven applications. Micron currently produces most of its memory chips at facilities across Asia, making the Taiwan fab a strategic addition to its existing network.
At the same time, Micron is expanding its manufacturing base in the United States. The company recently held a groundbreaking ceremony for a new semiconductor plant near Syracuse, New York. This follows Micron’s earlier commitment to invest up to $200 billion in the US over the long term, underscoring a dual strategy of strengthening domestic production while continuing to scale capacity in key Asian hubs.
The planned acquisition in Taiwan highlights Micron’s focus on balancing geographic diversification with supply chain resilience, as competition intensifies and global demand for advanced memory technologies continues to grow.
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