On January 17, Powerchip Semiconductor Manufacturing Corp (PSMC) announced the sale of its Tongluo fab in Taiwan to Micron Technology for $1.8 billion. This deal, expected to close in the second quarter, establishes a long-term partnership focusing on DRAM advanced packaging.
Micron plans to utilize the facility for DRAM production starting in the second half of 2027. Additionally, the agreement includes Micron assisting PSMC in upgrading niche DRAM technologies at its Hsinchu P3 plant.
PSMC Chairman Frank Huang noted that the AI-driven surge in DRAM demand made this a “win-win” scenario. The sale strengthens PSMC’s financial structure and integrates the company into Micron’s advanced supply chain.
This acquisition complements Micron’s global expansion, including a massive investment in New York, as the memory market enters a “super bull” phase. With AI training driving explosive demand for High Bandwidth Memory (HBM), Micron recently reported record-breaking revenue, reflecting the sector’s strong recovery.
