Micron's Strategic Acquisition: Expanding Taiwan's Semiconductor Horizons

Micron Technology has announced plans to acquire a fabrication plant from Taiwan's Powerchip Semiconductor for $1.8 billion. This move aims to expand its DRAM production capabilities by 2027, addressing the global demand for memory chips. The acquisition is expected to significantly increase Micron's capacity.

Micron Technology is set to expand its production capabilities with the acquisition of a fabrication plant from Taiwan's Powerchip Semiconductor Manufacturing Corp. Announced on Monday, the deal is priced at $1.8 billion in cash, and aims to bolster Micron's output of dynamic random access memory (DRAM) wafers beginning in the latter half of 2027.

The purchase will provide approximately 300,000 square feet of cleanroom space, a crucial component in chip production, and is expected to allow Micron to increase DRAM production incrementally. This comes at a time when global demand for memory chips is surging beyond current supply, according to Micron's statements.

TrendForce research suggests that the acquisition will enable Micron to expand its advanced-process DRAM capacity, potentially revising global DRAM supply upwards in 2027. Micron, a key player alongside Samsung and SK Hynix in the high bandwidth memory market, anticipates maintaining a tight grip on the memory markets beyond 2026.

(With inputs from agencies.)