January 19, 2026 /SemiMedia/ — U.S. memory chipmaker Micron Technology has signed an exclusive letter of intent to acquire fab buildings and utility facilities from Powerchip Semiconductor Manufacturing Corp (PSMC) for $1.8 billion in cash, the companies said on Friday.

The assets are located at PSMC’s P5 site in Tongluo Township, Miaoli County, and include a 300,000-square-foot cleanroom designed for 300-mm wafers. The transaction does not include manufacturing equipment and is expected to close in the second quarter of 2026, subject to definitive agreements and regulatory approvals.

Micron said the acquisition will support its long-term DRAM expansion strategy in Taiwan region, with the site positioned near its existing central Taiwan operations. The company expects the facilities to contribute to DRAM wafer output from the second half of 2027, helping meet rising global memory demand.

For PSMC, the deal is aimed at strengthening its balance sheet while laying the groundwork for deeper cooperation with Micron. The two companies plan to establish a long-term partnership in advanced DRAM packaging, with PSMC’s Hsinchu P3 fab playing a key role in niche DRAM process development.

PSMC also said it will continue to shift its production focus toward AI-related memory technologies, including 3D AI DRAM, wafer-on-wafer packaging and silicon interposers. As part of the transition, the company plans to streamline non-AI businesses and reduce exposure to lower-margin, mature-node products.