Key Points
- Powerchip’s shares jumped nearly 10% after Micron agreed to buy its P5 fab in Taiwan for $1.8 billion.
- Micron plans to use the facility to expand DRAM production capacity, with output expected by mid-2027.
- The acquisition strengthens a long-term partnership and adds cleanroom space for memory chip making in a tight global market.
Shares of Taiwan’s Powerchip Semiconductor Manufacturing Corp surged nearly 10% on Monday after U.S. memory-chip maker Micron Technology said it would buy Powerchip’s P5 fabrication plant in Tongluo, Miaoli County, Taiwan for $1.8 billion in cash. The letter of intent signals a significant step in Micron’s strategy to expand its DRAM production capacity amid robust global demand for memory chips.
Micron plans to take over the 300,000-square-foot cleanroom facility, which will help ramp up output of dynamic random-access memory (DRAM) wafers. The move reflects Micron’s intention to meet growing orders, particularly for high-bandwidth memory (HBM) required by artificial intelligence and data centre customers. The facility is expected to begin contributing to production in the second half of 2027, after the deal closes and integration begins.
The acquisition complements Micron’s existing footprint in Taiwan — where it has operated for more than three decades — and expands its capacity at a time when memory markets are expected to remain tight. Micron’s strong 2025 performance, including a roughly 240% share price jump, underlines investor confidence in its leadership in memory technologies and long-term industry trends.
Powerchip, one of Taiwan’s major semiconductor foundries, produces a range of legacy chips and memory products. The deal includes plans for a long-term partnership, with Micron assisting Powerchip in enhancing its DRAM process technologies and potentially supporting post-wafer assembly work. This cooperation could boost the competitiveness of both firms in a market dominated by a few large global suppliers.
Micron said the acquisition strengthens its ability to scale memory production in phases, a key advantage as demand for AI-enabled computing and data-intensive applications grows. Analysts view the expanded capacity as important for Micron’s strategy to secure supply and reduce reliance on older facilities while positioning the company to better compete with rivals such as Samsung and SK Hynix in the memory chip segment.
The deal still requires regulatory approvals before completion, anticipated by the second quarter of 2026. Even so, the market’s positive response reflects optimism that adding capacity now will pay off as memory demand stays strong through the latter half of the decade. Investors also see strategic value in the broader collaboration, as Powerchip gains backing from Micron’s technology and global reach.
