Micron Signs Letter of Intent to Purchase Tongluo Site, Begin Strategic Partnership with PSMC

Core Insights - Micron Technology, Inc. has signed an exclusive Letter of Intent to acquire Powerchip Semiconductor Manufacturing Corporation's P5 fabrication site in Taiwan for a total cash consideration of US$1.8 billion [1] - The acquisition includes a 300mm fab cleanroom of 300,000 square feet, aimed at addressing the growing global demand for memory solutions [1] - The transaction is expected to close by calendar Q2 2026, with Micron planning to ramp up DRAM production in phases starting in the second half of calendar 2027 [2] Company Strategy - This strategic acquisition complements Micron's current operations in Taiwan and is expected to increase production capacity to better serve customers amid rising demand [2] - The proximity of the Tongluo fab to Micron's Taichung site is anticipated to create operational synergies [2] - The acquisition aligns with Micron's ongoing global expansion plans to meet long-term customer demand [3]