Powerchip Semiconductor Manufacturing Corp. (PSMC) announced completion of its $1.8 billion transaction to sell its P5 plant in Tongluo, Miaoli County, Taiwan, to Micron Technology. The deal, originally outlined in a letter of intent announced on January 17, 2026, transfers ownership of the facility to Micron while establishing a collaboration framework between the two companies at PSMC’s Hsinchu plant site.
Under the agreement, PSMC and Micron will jointly develop high-bandwidth memory (HBM) and post-wafer-finish (PWF) foundry services, as well as advance memory process technologies. This partnership is expected to provide growth momentum for PSMC’s emerging 3D AI Foundry business.
Dr. Frank Huang, chairman of PSMC, stated that the company’s 3D AI Foundry Division has already entered AI application areas including Wafer-on-Wafer (WoW), Interposers, and Si-Capacitors. PSMC will provide HBM/PWF foundry services to Micron going forward. Through advancements in DRAM technology, PSMC aims to support customers in entering the 8G DDR4 product line and increase the output value of wafer manufacturing, further completing its 3D AI foundry technology roadmap.
The transaction enables PSMC to strengthen its short-term financial position and alleviate cost pressures from the lack of economies of scale at the Tongluo plant. PSMC has initiated equipment relocation from Tongluo to its Hsinchu site and is readjusting configurations there accordingly.
Amid rebounding memory market conditions and sustained strong demand for DRAM driven by AI applications, PSMC has accelerated its DRAM process advancement plan. Its Hsinchu 12-inch wafer fab maintains a monthly memory production capacity of 50,000 wafers, primarily offering DRAM and Flash foundry services on 2x-nanometer processes. To meet customer needs for higher-capacity and faster DRAM amid global supply constraints, PSMC’s Board of Directors approved a capital increase for new equipment investments to upgrade DRAM processes at the P3 plant, which has over 30,000 wafers monthly capacity.
In coordination with the Micron cooperation scheduled for formal signing in the second quarter PSMC will proceed with equipment procurement following approval at its Annual General Meeting of Shareholders. Micron will assist PSMC in advancing DRAM processes at the P3 plant, supporting steady progress in DRAM foundry capabilities and enhancing Wafer-on-Wafer foundry services for AI applications targeting domestic and international memory design firms.
The Tongluo P5 site, now under Micron ownership as of March 15, 2026, includes approximately 300,000 square feet of existing 300mm cleanroom space. Micron has begun retrofitting the cleanroom and expects meaningful product shipments from the existing fab starting in fiscal 2028. Plans include construction of a second comparable facility by the end of fiscal 2026, adding about 270,000 square feet of cleanroom space to expand leading-edge DRAM production, including HBM, in response to AI-driven demand. The site complements Micron’s Taichung operations, located approximately 15 miles away.
