A Micron logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS
TAIPEI, Jan 19 (Reuters) – Shares of Taiwan’s Powerchip Semiconductor Manufacturing Corp rose nearly 10% on Monday, after U.S. memory chipmaker Micron Technology said it would buy a fabrication plant from the company.
Micron Technology said on Saturday it had signed a letter of intent to acquire Powerchip’s P5 fabrication site in Tongluo, Miaoli County, Taiwan, for $1.8 billion in cash.
Micron said it expects the deal to help boost its output of dynamic random access memory (DRAM) wafers beginning in the second half of 2027.
The purchase will add about 300,000 square feet of cleanroom space, a highly controlled environment needed for chip production, the company said. It will allow Micron to ramp up DRAM production in phases at a time when global demand for memory continues to outpace supply, the company added.
Micron is one of only three major suppliers of high bandwidth memory (HBM) chips essential to AI technology, alongside South Korea’s Samsung and SK Hynix <000660.KS >.
Micron CEO Sanjay Mehrotra said last month he expects memory markets to remain tight beyond 2026. The company’s shares gained a whopping 240% in 2025, far outpacing the benchmark chip index’s 42% gain.
Micron has been operating in Taiwan for more than 30 years and is the island’s largest foreign direct investor, according to Micron Taiwan’s website. Its facilities in Taichung, Taiwan, are a key production hub for DRAM and HBM products.
Powerchip said in a statement on Saturday that Micron will establish a long-term foundry relationship with the company for DRAM advanced-packaging wafer manufacturing, and will assist Powerchip in enhancing its specialty DRAM process technologies.
Micron said the transaction is expected to close by the second quarter of 2026, subject to regulatory approvals.
Reporting by Wen-Yee Lee; Editing by Himani Sarkar
