Micron Technology, Inc. (NASDAQ:MU) on Saturday signed a deal to buy a major semiconductor plant in Taiwan for $1.8 billion.
The move, which marks a big step in Micron’s plan to expand global memory production, closely follows the tech giant’s plan, where it said that it will break ground on its $100 billion memory manufacturing complex in Onondaga County, New York.
In the latest acquisition deal, Micron Technology said it signed an exclusive Letter of Intent to acquire Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site in Tongluo, Taiwan.
The agreement will add significant DRAM manufacturing capacity, as the firm positions to meet surging memory demand.
Deal Structure And Location
The facility sits in Tongluo, Miaoli County, Taiwan. It includes a 300,000-square-foot 300 mm cleanroom designed for advanced memory wafer fabrication.
Micron expects the site to support production phases starting in 2027.
Strategic Partnership
Under the LOI, Micron and PSMC will work on long-term cooperation for post-wafer assembly processing.
The arrangement will also support PSMC’s legacy DRAM business. The partnership aims to strengthen both companies’ positions in the memory ecosystem.
Executive Commentary
“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.
He highlighted operational synergies with Micron’s nearby Taichung site.
Timeline
Micron plans to complete the transaction by the second quarter of 2026, pending regulatory approvals and final deal documents.
Once closed, the company will begin phased DRAM output ramp-up later in 2027.
Industry Context
The acquisition aligns with Micron’s broader strategy to scale capacity amid strong global demand for memory chips.
Demand continues to rise across artificial intelligence, data centers and high-performance computing markets.
Financial Position
Micron ended its most recent quarter with roughly $12 billion in combined cash, marketable securities and restricted cash.
The company’s board also approved a quarterly dividend of $0.115 per share payable in mid-January.
Market Players
Related stocks include Intel Corporation (NASDAQ:INTC) and Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM).
According to Benzinga Pro, MU stock has gained over 243% in the past year. Investors can gain exposure to the stock via GraniteShares 2x Long MU Daily ETF (NASDAQ:MULL).
