Core Viewpoint - Micron Technology has signed a letter of intent to acquire a wafer fabrication facility from Powerchip Semiconductor Manufacturing Corporation in Taiwan for $1.8 billion to expand its memory chip production capacity [2][4]. Group 1: Acquisition Details - The acquisition involves Micron taking over the P5 facility located in Tongluo, Taiwan, with plans to gradually increase DRAM production after the transaction is completed in the second quarter of 2026 [4]. - Micron expects significant DRAM wafer output growth starting in the second half of 2027 as a result of this acquisition [4]. - The facility is strategically located next to Micron's existing operations in Taichung, which is anticipated to enhance operational synergies [4]. Group 2: Operational Impact - The acquisition will complement Micron's current operations in Taiwan and is aimed at effectively increasing production capacity to better serve customers in a market where demand exceeds supply [4]. - Micron's global operations executive vice president emphasized the strategic nature of this acquisition, highlighting the company's commitment to meeting long-term customer demand through active investment [4]. Group 3: Facility Specifications - The Tongluo facility is set to begin operations in May 2024, focusing on niche processes such as 55nm and 40nm, with an initial design capacity of approximately 40,000 to 50,000 wafers per month [5]. - Currently, only about 8,000 wafers per month of related equipment have been deployed due to customer demand and market conditions [5].

Core Insights - Micron is set to expand its DRAM factory in Higashi-Hiroshima, Japan, with construction starting in May 2026 and aims to achieve HBM memory shipments by 2028 [1][3] - The Japanese Ministry of Economy, Trade and Industry announced a subsidy of up to 536 billion yen (approximately 24.3 billion RMB) for the factory, while Micron has committed to invest 1.5 trillion yen (approximately 68 billion RMB) in capacity expansion at this site [1] - Despite being the second-largest in HBM shipment volume this year, Micron's overall goal is to achieve a market share in HBM that is comparable to its overall DRAM share [3] - The company is also actively expanding production in the United States, planning to build six DRAM wafer fabs over the next 20 years [3]