Overview
- Micron signed a letter of intent to acquire Powerchip’s entire P5 site in Tongluo, Taiwan, for $1.8 billion, gaining a 300 mm fab with a 300,000-square-foot cleanroom.
- The company expects the site to deliver meaningful DRAM wafer output in the second half of 2027 as it expands capacity to serve data center and AI customers.
- PSMC will vacate Tongluo, move production lines to Hsinchu, and plans to phase out low-margin mature-node work while shifting toward AI-related products.
- Micron and PSMC will establish a long-term foundry relationship focused on DRAM advanced packaging wafer manufacturing.
- Industry researchers describe a hyper bull memory cycle with prices projected to rise 40–50 percent quarter over quarter in Q1 2026, as HBM expansion tightens supply of general-purpose DRAM and Micron reports its 2026 HBM output is already pre-sold.