Micron's Strategic Acquisition: Powerchip Deal Sparks Surge in Shares

Micron Technology plans to acquire Powerchip Semiconductor's fabrication site in Taiwan for $1.8 billion, boosting DRAM output. The purchase will expand Micron's cleanroom space amid rising memory demand, with the deal closing by 2026. Powerchip shares rose nearly 10% following the announcement.

Micron Technology's recent announcement of its acquisition plan has caused a significant ripple effect in the semiconductor industry. The U.S. memory chipmaker revealed intentions to purchase Powerchip Semiconductor's P5 fabrication site in Taiwan for $1.8 billion, sending Powerchip's shares soaring nearly 10% on Monday.

This strategic move is expected to enhance Micron's production of dynamic random access memory (DRAM) wafers by adding about 300,000 square feet of cleanroom space. The acquisition is crucial as the global demand for memory continues to outpace supply, with Micron being a key supplier of high bandwidth memory chips needed for AI technology.

Powerchip and Micron foresee a long-term foundry relationship, with the deal anticipated to conclude by the second quarter of 2026. Both companies aim to boost their technological prowess, with Micron solidifying its presence in Taiwan, where it has been a major investor for over 30 years.