Micron Technology, Inc. signs LOI for Tongluo fab

Micron Technology, Inc. signed an exclusive Letter of Intent to acquire Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site in Tongluo, Miaoli County, Taiwan, for US$1.8 billion to address growing global demand for memory solutions.

The LOI outlined plans for a long-term relationship between Micron and PSMC covering Micron’s post-wafer assembly processing and support for PSMC’s legacy DRAM portfolio, and these elements were incorporated into the transaction framework.

The purchase included an existing 300mm Chip Fabrication Plant (Fab) cleanroom measuring 300,000 square feet; the companies said Micron planned to equip the P5 site and to phase in DRAM production as part of the integration work referenced in the LOI.

The parties planned for the transaction to close after completion of deal agreements and the required regulatory approvals, with an anticipated closing by calendar Q2 2026; upon closing Micron would assume ownership and control while PSMC would relocate its Tongluo operations over a specific time.

“This strategic acquisition of an existing cleanroom complements our current Taiwan operations and will enable Micron to increase production and better serve our customers in a market where demand continues to outpace supply,” said Manish Bhatia, executive vice president of global operations at Micron Technology. “The Tongluo fab’s close proximity to Micron’s Taichung site will enable synergies across our Taiwan operations.”

The transaction is anticipated to close by calendar Q2 2026, and Micron expected DRAM wafer output to begin in the second half of calendar 2027.