Micron Completes $1.8 Billion Acquisition of PSMC’s P5 Wafer Fab to Strengthen AI Memory Portfolio

Micron Technology recently announced the completion of its acquisition of the P5 wafer fab from Powerchip Semiconductor Manufacturing Corporation (PSMC) in Tongluo, Miaoli County, Taiwan, China, for a total transaction value of $1.8 billion. The site will serve as a strategic extension of Micron’s large-scale Taichung campus, forming a vertically integrated ecosystem with Micron’s Taichung plant approximately 15 miles away, further strengthening Micron’s industrial presence in the region.

The fab features around 300,000 square feet of 12-inch wafer cleanroom space, which will support Micron’s expanded production of advanced DRAM products including HBM, to meet surging market demand driven by artificial intelligence. Micron has begun preparation work for the new site following the transaction announcement, and will initiate renovations of the existing cleanroom upon completion of the deal. Micron also plans the next phase of expansion at the site, with construction of a second facility of similar scale scheduled to start by the end of fiscal 2026, adding approximately 270,000 square feet of new cleanroom space. Volume production at the Tongluo site is expected to begin in fiscal 2028.

In conjunction with the facility transfer to Micron, the two companies will carry out HBM Post-Wafer Fabrication (PWF) services at PSMC’s Hsinchu site as agreed, and advance cooperation in memory process technology.PSMC Chairman Huang Chung-Jen stated that the company’s 3D AI foundry business unit has penetrated AI application fields including Wafer-on-Wafer (WoW) stacking, interposers, and silicon capacitor wafers. PSMC will provide HBM/PWF foundry services to Micron in the future. Meanwhile, advancements in DRAM technology will not only support customers in entering the 8G DDR4 product line, but also significantly boost wafer foundry revenue and further complete PSMC’s 3D AI foundry technology roadmap.

PSMC has begun reconfiguring equipment at its Hsinchu site and is gradually relocating equipment from the Tongluo fab to Hsinchu according to plan. Following the completion of the transaction, PSMC expects to strengthen its financial position in the short term and significantly reduce cost pressure caused by insufficient economies of scale at the Tongluo facility.