Micron Technology announced on January 17 (US time) that Powerchip Semiconductor Manufacturing Corporation (PSMC) has entered into a basic agreement to establish a P5 factory in Tongluo, Taiwan.

Under the compromise, Micron will acquire a wafer fab that includes a 28,000 square meter clean room. The company is said to be in a position to expand production capacity in the memory market, where demand continues to exceed supply. The Causeway factory is also close to Micron’s base there, and operational synergies are expected within Taiwan.

The solution also includes a strategic partnership in which Micron intends to provide PSMC with post-wafer assembly assistance and assistance with its legacy DRAM portfolio.

The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals. After the transaction is completed, PSMC will withdraw from Causeway after a certain period of time, and Micron will gradually introduce DRAM production equipment. The company is said to be looking at actual production of DRAM wafers from the second half of 2027.