Micron Completes $1.8 Billion Acquisition of PSMC’s P5 Wafer Fab

Micron Technology recently announced the completion of its acquisition of the P5 wafer fab from Powerchip Semiconductor Manufacturing Corporation (PSMC), located in Tongluo, Miaoli County, Taiwan, China, in a deal valued at $1.8 billion.

The facility features approximately 300,000 square feet of 12-inch wafer cleanroom space, which will be used to support Micron’s expanded supply of advanced DRAM products, including HBM, to meet market demand driven by artificial intelligence. Micron plans to begin construction of a second wafer fab by the end of fiscal 2026, adding an additional 270,000 square feet of cleanroom space, with volume production expected to start in fiscal 2028.

Upon transferring the facility, PSMC will provide HBM back-end wafer manufacturing services to Micron as agreed, and advance cooperation in memory process technology. This strategic transformation is expected to inject strong growth momentum into PSMC’s new 3D AI foundry business.