Micron to buy Taiwan chip fabrication site for US$1.8 billion

[NEW YORK] Micron Technology has signed a letter of intent to buy a fabrication site in Taiwan from Powerchip Semiconductor Manufacturing for US$1.8 billion to expand its memory chip production.

Micron will take control of the P5 site in Tongluo, Taiwan and plans to ramp up DRAM production in phases after the transaction closes in the second quarter, the company said in a statement on Saturday (Jan 17). It expects the transaction to contribute to meaningful DRAM wafer output in the second half of 2027.

The companies will also partner on Micron’s post-wafer assembly processing and to support Powerchip in its legacy DRAM portfolio, Micron said.

The investment is part of Micron’s global expansion as it seeks to meet continued demand for memory chips.

The company, which currently makes most of its chips at facilities in Asia, on Friday (Jan 16) held a groundbreaking ceremony for a new plant outside Syracuse, New York, having promised last year to invest as much as US$200 billion in the US. BLOOMBERG