Taiwan says U.S. chip deal won’t hollow out its tech sector as $500B tariff pact takes shape

Micron Technology revealed Saturday it has signed an exclusive letter of intent to acquire Powerchip Semiconductor Manufacturing Corp’s P5 fab in Tongluo, Taiwan, for $1.8 billion in cash. The 300-millimeter facility spans a 300,000-square-foot cleanroom and is set to strengthen Micron’s strategic ties with PSMC. The deal is expected to close by Q2 2026, pending final agreements and regulatory clearance. Micron projects the site will boost DRAM wafer output starting in the second half of 2027. Shares rose 7.8% to $362.75 on Friday. COO Manish Bhatia said the acquisition “will enable Micron to increase production and better serve our customers.”

Micron Technology closed Friday 7.8% higher, at $362.75. Shares fluctuated between $346.65 and $365.59, with roughly 48 million traded.