Micron Completes $1.8 Billion Acquisition of Taiwan Fab Site to Power AI Memory Production

Micron Secures Major Taiwan Facility in $1.8 Billion Deal

Micron Technology announced on Sunday that it has completed its acquisition of Powerchip Semiconductor Manufacturing Corporation's P5 fabrication site in Tongluo, Miaoli County, Taiwan, closing a deal valued at $1.8 billion in cash. The transaction gives the American chipmaker immediate ownership of approximately 300,000 square feet of existing 300mm cleanroom space, which the company will begin retrofitting this month.

Fast-Tracked Closing Beats Original Timeline

Micron first signed a letter of intent to acquire the site on 17 January 2026, originally expecting the deal to close by the second quarter of the calendar year. Regulatory approvals from Taiwan's Ministry of Economic Affairs, National Science and Technology Council, Hsinchu Science Park, and Miaoli County Government came through ahead of schedule, allowing the transaction to close early.

AI Demand Driving Urgent Capacity Expansion

The acquisition reflects the intense pressure facing memory chipmakers as AI-driven demand for advanced products like High-Bandwidth Memory and DDR5 continues to outstrip supply. According to market analyst TrendForce, capacity from the Tongluo site's first phase is projected to account for more than ten percent of Micron's global DRAM capacity by the second half of 2027. Micron has described itself as being more than sold out of HBM through calendar year 2026, with the total addressable market expected to grow from roughly $35 billion in 2025 to around $100 billion by 2028.

Broader Global Strategy Takes Shape

The Taiwan deal is part of a sweeping expansion strategy that includes a $24 billion NAND and HBM packaging facility in Singapore, CHIPS Act-funded fabs in Idaho and New York, and planned capital expenditure of approximately $20 billion for fiscal 2026. The brownfield Taiwan acquisition offers a notably faster path to new capacity compared to greenfield builds elsewhere, with meaningful product shipments expected to begin in fiscal 2028 and construction on a second facility of comparable scale planned to begin by the end of fiscal 2026.