Micron Signs $1.8 Billion LOI to Acquire PSMC's Tongluo P5 Fab Amid Tight DRAM Supply

Micron Technology has signed an exclusive Letter of Intent (LOI) to acquire Powerchip Semiconductor Manufacturing Corporation’s (PSMC) P5 fabrication site in Tongluo, Miaoli County, Taiwan, for a total cash consideration of US$1.8 billion.

The deal includes an existing 300mm fab cleanroom spanning 300,000 square feet. This addition is intended to help Micron meet growing global demand for memory solutions, where demand continues to outpace supply.

The LOI also establishes a long-term strategic relationship between the two companies. This includes support for Micron’s post-wafer assembly processing and assistance to PSMC in maintaining its legacy DRAM portfolio. Micron will also aid PSMC in enhancing specialty DRAM process technologies at its Hsinchu P3 fabrication site.

Manish Bhatia, executive vice president of global operations at Micron, stated that the acquisition complements the company’s current operations in Taiwan. The Tongluo site’s proximity to Micron’s Taichung facility is expected to create operational synergies.

The transaction is expected to close in calendar Q2 2026, subject to final deal agreements and required regulatory approvals. Following closure, Micron will take ownership and control of the P5 site, equipping and ramping up DRAM production in phases. PSMC will relocate its Tongluo operations over...