NEW YORK, Jan 19, 2026, 12:22 EST — Market closed.
- U.S. markets will be closed Monday in observance of Martin Luther King Jr. Day. Trading is scheduled to pick back up Tuesday.
- Micron announced it has signed a letter of intent to acquire Powerchip’s P5 fab in Taiwan for $1.8 billion in cash.
- The PHLX Semiconductor Index ended Friday up 1.15%.
Micron Technology’s $1.8 billion move to acquire a Taiwan fabrication facility has reignited interest in semiconductor stocks. U.S. markets were closed Monday, leaving investors to digest the news ahead of Tuesday’s open.
The move comes as chip investors wrestle with the true meaning of “tight supply” in memory chips—the components powering servers and AI systems—and just how long pricing power might hold.
Traders aren’t focused on any one factory. The bigger question is whether the industry remains in catch-up after years of AI-fueled investment, and how new capacity might shape the next cycle.
Micron shares ended Friday at $362.75, jumping 7.8%. The rest of the sector showed a mixed picture: Nvidia dipped 0.5%, AMD climbed 1.7%, ASML added 2.1%, and Intel dropped 2.8%.
Micron announced Saturday it signed a letter of intent to buy Powerchip Semiconductor Manufacturing Corp’s P5 fab in Tongluo, Taiwan. The deal adds roughly 300,000 square feet of cleanroom space — essential for chipmaking — with DRAM wafer production slated to begin in the latter half of 2027. Powerchip’s shares jumped nearly 10% in Monday trading in Taiwan.
DRAM, short for dynamic random access memory, powers most computers and servers. In AI setups, however, a speedier variant known as high-bandwidth memory (HBM) is hitting supply constraints as demand surges. Micron is battling it out with Samsung Electronics and SK Hynix in this space, Reuters reported.
TrendForce noted that Micron’s purchase of Tongluo will boost its advanced-process DRAM capacity. This move might prompt a rise in global DRAM supply forecasts for 2027. The initial phase alone, expected late that year, could add over 10% to Micron’s worldwide capacity as measured in Q4 2026.
The deal throws a wrench into chip equipment stocks, which had been rallying on hopes of expanded capacity. ASML, the global leader in advanced lithography systems, is set to release earnings on Jan. 28.
The timeline stretches out, and that’s where the risk lies. The deal still requires regulatory approval and is set to close by Q2 2026. However, significant output won’t kick in until 2027, opening the door to potential demand slumps, price adjustments, or quicker-than-anticipated supply reactions from competitors.
As U.S. markets resume Tuesday, all eyes will be on whether Micron’s rally lifts other memory stocks, and if chip giants can hold steady before Nvidia reports earnings on Feb. 25.
