Micron Technology, Inc. (MU) announced it has signed an exclusive Letter of Intent (LOI) to acquire Powerchip Semiconductor Manufacturing Corporations (PSMC) P5 fabrication site in Tongluo, Miaoli County, Taiwan, for total cash consideration of US$1.8 billion.
The acquisition includes an existing 300mm fab cleanroom of 300,000 square feet and will further position Micron to address growing global demand for memory solutions. The LOI also aims to establish a long-term relationship between Micron and PSMC for Microns post-wafer assembly processing and to support PSMC in its legacy DRAM portfolio.
The transaction is anticipated to close by the second quarter of 2026, following the closure of deal agreements and the required regulatory approvals. Upon closing the transaction, Micron will assume ownership and control of the P5 site to equip and ramp up DRAM production in phases, with PSMC relocating its Tongluo operations over a specific time. Micron expects this acquisition to contribute to meaningful DRAM wafer output beginning in the second half of calendar 2027.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.