A Micron signed an exclusive letter of intent to acquire the PSMC P5 Manufacturing Unit (Powerchip Semiconductor Manufacturing Corporation) in Tongluo, Taiwan, for a total cash value of US$1.8 billion.
In a statement, the American giant mentions that the acquisition includes a 300 mm clean room with 300,000 square feet (approximately 27,871 m2) in a deal that will position Micron to meet the growing global demand for memory solutions.
The letter of intent also seeks to establish a long-term relationship between Micron and PSMC for post-assembly processing of Micron wafers and to support PSMC in its DRAM portfolio.
“This strategic acquisition of an existing cleanroom complements our current operations in Taiwan and will allow Micron to increase production and better serve our customers in a market where demand continues to outpace supply,” said Manish Bhatia, executive vice president of global operations, Micron Technology.
“The proximity of the Tongluo factory to the Micron unit in Taichung will enable synergies in our operations in Taiwan,” he added.
The transaction is expected to close by the second quarter of 2026, after finalizing contracts and obtaining necessary regulatory approvals.
The announcement of the acquisition boosted Powerchip’s shares, which rose almost 10% in Taiwan this Monday. The company’s competitors, Samsung Electronics and SK Hynix, rose 0.3% and 1.06%, respectively, in Seoul.
The agreement comes after the US and Taiwan signed a tariff agreement last week that drew criticism from Chinese government officials.
