New York, Jan 17, 2026, 12:43 p.m. ET — Market closed.
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 (12-inch) 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)
The weekend news comes as Micron stands out among large-cap chipmakers, buoyed by AI-fueled demand for memory chips in data centers and storage. Over the past year, Micron’s shares have climbed nearly 250%, per Investopedia. (Investopedia)
Investors are focused first on whether snapping up existing cleanroom space can secure supply quickly enough to hold prices steady. Beyond that, the bigger issue is how long the current memory upcycle will persist once new capacity finally comes online.
A Micron director snapped up 23,200 shares on January 13 and 14, paying roughly $337 each, according to a recent securities filing. After these buys, the director’s direct stake climbed to 25,910 shares, per the Form 4. (SEC)
The S&P 500 closed Friday down 0.1%, slipping modestly as earnings season kicked off on a mixed note. The Nasdaq also dipped 0.1%, pulling the broader market slightly lower to wrap up the week. (AP News)
Within the broader memory-and-storage sector, Seagate Technology edged up 1.9% on Friday. Western Digital, meanwhile, dipped 0.2%, reflecting a mixed mood despite Micron climbing to a fresh peak.
The context is crucial as the coming days bring a slew of catalysts beyond just semiconductors, like additional corporate earnings and new political developments. “Earnings actually carry the news cycle” right now, said Art Hogan, chief market strategist at B Riley Wealth, in an interview with Reuters. (Reuters)
Still, the Tongluo plan remains in its infancy, and memory chips are notorious for their volatile pricing cycles. When demand slips or supply ramps up sooner than predicted, investors can swing from cheering new capacity one quarter to fretting over oversupply the next.
U.S. stock and bond markets will be closed Monday, Jan. 19, in observance of Martin Luther King Jr. Day. That means Micron’s first real test of the $1.8 billion deal won’t come until Tuesday’s open. (Investopedia)
