Micron has signed a Letter of Intent (LOI) to acquire Powerchip Semiconductor Manufacturing Corporation’s (PSMC) P5 fabrication site in Tongluo, Taiwan, for $1.8 billion.

In a statement, Micron said the agreement will see it take ownership and control of the P5 site, allowing it to increase DRAM production in phases and meet long-term demand from its customers.

Under the terms of the deal, Micron will acquire an existing 300mm fab cleanroom of 300,000 sq ft (27,871 sqm), which Manish Bhatia, EVP of global operations at Micron Technology, said will complement the company’s current Taiwan operations, enabling Micron to increase production and “better serve [its] customers in a market where demand continues to outpace supply.

“The Tongluo fab’s close proximity to Micron’s Taichung site will enable synergies across our Taiwan operations,” he added.

The transaction is expected to close by Q2 2026, and once the deal has completed, PSMC will start to relocate its Tongluo operations. Micron said it expects this acquisition to result in “meaningful DRAM wafer output” beginning in the second half of 2027.

The announcement comes a month after Micron announced plans to exit the consumer memory and storage market in favor of AI data center customers. Last week, the Wall Street Journal reported that data from TrendForce shows that up to 70 percent of the memory produced worldwide in 2026 will be consumed by data centers.

On January 16, the company broke ground on a $100 billion semiconductor fab campus in Onondaga County, New York. Consisting of four fabs when fully built, the so-called megafab is expected to be the largest semiconductor facility in the US once complete, and will house “the most advanced memory manufacturing in the world.”