Micron Technology Inc. has inked a preliminary agreement to purchase a semiconductor fabrication plant in Taiwan from Powerchip Semiconductor Manufacturing Corp. for $1.8 billion in order to increase its memory chip output.
Micron will secure ownership of the P5 location in Tongluo, Taiwan, and intends to steadily increase DRAM manufacturing after the transaction is finalized in the second quarter, the corporation stated in a press release issued Saturday. The agreement is projected to offer substantial DRAM wafer fabrication in the latter half of 2027.
The entities will also cooperate on post-wafer processing for Micron, alongside assistance for Powerchip’s existing DRAM collection, according to Micron.
This investment is a component of Micron’s worldwide growth initiative to satisfy ongoing requirements for memory chips. The firm, which presently produces the majority of its chips at locations in Asia, conducted an inaugural event on Friday for a fresh manufacturing facility near Syracuse, New York, after committing to allocate as much as $200 billion in the United States in the previous year.
Source: Bloomberg