In a significant move to bolster its DRAM production capabilities, Micron Technology has announced a letter of intent to acquire Powerchip Semiconductor's P5 fabrication site in Taiwan for a staggering $18 billion. This acquisition comes at a time when the global memory supply remains tight, highlighting the strategic importance of increasing production capacity. The source reports that this deal could significantly impact the competitive landscape of the semiconductor industry.
Phased Production Ramp Timeline
The agreement outlines a phased production ramp that is set to commence once the ownership transfer is completed in the second quarter of 2026. Micron anticipates that substantial DRAM wafer output will begin in the latter half of 2027, positioning the company to better meet the growing demand for memory products.
Collaboration on Post-Wafer Assembly Processing
In addition to the acquisition, Micron and Powerchip have agreed to collaborate on post-wafer assembly processing. This partnership will also support Powerchip's existing DRAM portfolio, ensuring a smooth transition and continued innovation in memory technology. The deal underscores Micron's commitment to enhancing its manufacturing capabilities and addressing the challenges of the current memory market.
In a notable contrast to Micron's recent acquisition announcement, the US Department of Commerce has granted Nvidia permission to sell its H200 chips in China under strict conditions. For more details, see read more.
