Micron Technology is moving to strengthen its manufacturing footprint in Taiwan with a major acquisition plan. The U.S. chipmaker announced it has signed an exclusive letter of intent to purchase Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication facility in Tongluo, Taiwan, in an all-cash deal valued at US$1.8 billion.
If completed, the transaction would give Micron direct control of an established fabrication site, helping the company expand production capacity and reinforce supply chain resilience at a time when chip demand and long-term capacity planning remain central to the semiconductor industry. The P5 fab in Tongluo is a significant asset in Taiwan’s manufacturing ecosystem, and the proposed purchase signals Micron’s intent to deepen its presence in one of the world’s most important semiconductor hubs.
At this stage, Micron describes the agreement as an exclusive letter of intent, meaning the discussions are moving forward under an exclusivity window while the parties work through next steps. The company said the deal would be completed through a cash transaction for the P5 fabrication site, with the stated value set at US$1.8 billion.
With this move, Micron positions itself to scale operations through a strategic facility acquisition rather than relying solely on new-build expansion, potentially accelerating its ability to respond to market needs. As the process continues, industry watchers will be paying close attention to how the acquisition progresses and what it could mean for Micron’s manufacturing strategy in Taiwan and beyond.
