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

Core Insights - Micron Technology, Inc. has signed a Letter of Intent to acquire Powerchip Semiconductor Manufacturing Corporation's P5 fabrication site in Taiwan for $1.8 billion, which includes a 300,000 square feet cleanroom [1][2] - The acquisition aims to enhance Micron's production capabilities to meet the increasing global demand for memory solutions and establish a long-term partnership with PSMC [1][2][3] Company Strategy - The acquisition is expected to complement Micron's existing operations in Taiwan, allowing for increased production and improved customer service in a market where demand exceeds supply [2] - The transaction is anticipated to close by Q2 2026, with Micron planning to ramp up DRAM production in phases starting in the second half of 2027 [2] Industry Context - This strategic move aligns with Micron's global expansion plans to meet long-term customer demand for memory and storage solutions [3]