Shares of Taiwan’s Powerchip Semiconductor Manufacturing Corp rose nearly 10 per cent on Monday, after U.S. memory chipmaker Micron Technology said it would buy a fabrication plant from the company.
Micron Technology said on Saturday it had signed a letter of intent to acquire Powerchip’s P5 fabrication site in Tongluo, Miaoli County, Taiwan, for $1.8 billion in cash.
Powerchip is one of Taiwan’s major semiconductor foundries and produces both legacy chips and memory chips.
Micron said it expects the deal to help boost its output of dynamic random access memory (DRAM) wafers beginning in the second half of 2027.
The purchase will add about 300,000 square feet of cleanroom space, a highly controlled environment needed for chip production, the company said. It will allow Micron to ramp up DRAM production in phases at a time when global demand for memory continues to outpace supply, the company added.
Micron is one of only three major suppliers of high bandwidth memory (HBM) chips essential to AI technology, alongside South Korea’s Samsung and SK Hynix <000660.KS >.
Micron CEO Sanjay Mehrotra said last month he expects memory markets to remain tight beyond 2026. The company’s shares gained a whopping 240 per cent in 2025, far outpacing the benchmark chip index’s 42 per cent gain.
Micron has been operating in Taiwan for more than 30 years and is the island’s largest foreign direct investor, according to Micron Taiwan’s website. Its facilities in Taichung, Taiwan, are a key production hub for DRAM and HBM products.
