Micron to acquire Taiwanese chip manufacturing facility for $1.8B
What's the story
Micron Technology has announced its plan to acquire a semiconductor fabrication site in Taiwan from Powerchip Semiconductor Manufacturing for $1.8 billion. The move is part of Micron's strategy to expand its memory chip production capacity. The company will take over the P5 site located in Tongluo, Taiwan, and plans to gradually increase DRAM production after the deal is finalized in the second quarter.
Production increase
Micron's acquisition to boost DRAM wafer output
Micron expects the acquisition to significantly boost its DRAM wafer output in the second half of 2027. The company also plans to collaborate with Powerchip on post-wafer assembly processing and support for its legacy DRAM portfolio. This partnership is expected to further enhance Micron's capabilities in memory chip production and distribution.
Expansion plans
Global expansion and new US plant
The acquisition is part of Micron's global expansion strategy to meet the rising demand for memory chips. The company, which currently produces most of its chips in Asia, recently held a groundbreaking ceremony for a new plant near Syracuse, New York. This comes as part of Micron's promise last year to invest up to $200 billion in the United States.