Taiwan’s Powerchip sells legacy fab it opened just 19 months ago after spending $9.5 billion

Micron has found a way to add new DRAM manufacturing capacity in a hurry by acquiring a chipmaking campus from Taiwanese outfit Powerchip Semiconductor Manufacturing Corporation (PSMC).

The two companies announced the deal last weekend. Micron’s version of events says it’s signed a letter of intent to acquire Powerchip’s entire P5 site in Tongluo, Taiwan, for total cash consideration of US$1.8 billion.

“The acquisition includes an existing 300 mm fab cleanroom of 300,000 square feet and will further position Micron to address growing global demand for memory solutions,” the company stated, adding that the company “expects this acquisition to contribute to meaningful DRAM wafer output beginning in the second half of calendar 2027.”

Powerchip’s take on the deal includes news that it will establish a long-term foundry relationship with Micron “on DRAM advanced packaging wafer manufacturing.”

The deal means PSMC will leave the ...