Micron Technology revealed plans to buy Powerchip Semiconductor Manufacturing Corp’s P5 fab in Tongluo, Taiwan, for $1.8 billion in cash. This move underscores Micron’s confidence that demand for dynamic random access memory—used mainly in computers and servers—will keep outstripping supply. Shares of Powerchip surged nearly 10% after the announcement. The acquisition brings about 300,000 square feet of cleanroom space to Micron and aims to increase DRAM wafer production starting in the second half of 2027. The deal should wrap up by Q2 2026, subject to regulatory approval. TrendForce projects the initial capacity phase could account for more than 10% of Micron’s global output by Q4 2026. CEO Sanjay Mehrotra warned the tightness in the market might persist past 2026 as Samsung Electronics and SK Hynix boost output of high-bandwidth memory chips designed for AI accelerators.
