Micron secures more DRAM manufacturing with a $1.8 billion purchase

Micron has announced it has secured a way to quickly add more DRAM manufacturing capacity to its portfolio amid a global memory crisis.

Micron secures more DRAM manufacturing with a $1.8 billion purchase
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Tech and Science Editor
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TL;DR: Micron is expanding its DRAM manufacturing capacity by acquiring Powerchip's 300 mm fab in Tongluo, Taiwan, for $1.8 billion. This strategic purchase aims to meet growing global memory demand, with significant DRAM production expected to begin in the second half of 2027, enhancing Micron's market position.

The emergence of AI and its demand for as much DRAM as possible has put a global strain on the market, but Micron, one of the three big memory makers, has now secured a way to add more manufacturing capacity to its portfolio.

Micron secures more DRAM manufacturing with a $1.8 billion purchase 561156156
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Micron and Powerchip Semiconductor Manufacturing Corporation (PSMC), a Taiwanese company, have announced a deal that transfers ownership of Powerchip's P5 site located in Tongluo, Taiwan, for $1.8 billion. Micron announced it signed a letter of intent to carry out the purchase, which includes an existing 300 mm fab cleanroom of 300,000 square feet.

According to Micron's statement, the purchase of the fab will assist in satisfying the demand for DRAM, and it expects the fab to begin contributing with meaningful output in the second half of 2027.

The deal means PSMC will depart from the Tongluo site and move its operations to another of the company's facilities in Hsinchu. The departure from the facility comes only two years after PSMC opened the location, and the company has informed its customers that it can make the transition to Hsinchu without disrupting operations.

"The acquisition includes an existing 300 mm fab cleanroom of 300,000 square feet and will further position Micron to address growing global demand for memory solutions." Adding, it "expects this acquisition to contribute to meaningful DRAM wafer output beginning in the second half of calendar 2027."