Gaming: Micron Signs A Deal To Acquire A Chip Foundry In Taiwan For $1.8...

As the memory supply crisis rages on, manufacturers are continuing to scale up operations in a bid to meet the accelerated demand. The latest memory maker to expand its production line is Micron, which has just signed a letter of intent to acquire Powerchip Semiconductor Manufacturing Corporation’s (PSMC) Tongluo chip foundry in Taiwan.

The company's statement to its investors clarifies that this includes an existing 300 mm wafer cleanroom measuring 300,000 square feet, though none of the production equipment contained therein. In total, it's a deal to the tune of $1.8 billion that will encompass more than facilities, with Micron also hoping to establish a long-term business relationship with PSMC.

This latest announcement follows recent comments from Micron's VP of Marketing, Christopher Moore, that "there's just not enough supply to go around."

However, while this eye-watering transaction is expected to complete during the second quarter of 2026, with Micron assuming control of the fab immediately after, the site isn't expected to contribute meaningfully to DRAM wafer output until the latter half of 2027.

Simply put, even with this deal as well as SK Hynix accelerating its own fab plans, you shouldn't expect the memory supply crisis to ease before the end of this year.

As this acquisition does not include manufacturing hardware, Micron will launch a multi-phase plan to deploy both new and existing chip manufacturing tech. Given the Tongluo fab's close proximity to the company's existing Taichung site, it's hoped that the acquisition will work to both aid "Micron’s post-wafer assembly processing and to support PSMC in its legacy DRAM portfolio."

According to TrendForce, Micron has been on a fab acquisition roll as of late; before scooping up the Tongluo site, Micron had also acquired two other fabs from AU Optronics, plus one from AUO Crystal, and one more from Glorytek. Additionally, the company plans to repurpose some of its existing NAND flash facilities in Singapore towards DRAM metallization.

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All of that is without even mentioning the recent closure of sub-brand Crucial, reducing the company's presence in the consumer space to a toehold.

Though it's definitely been busy, the demands of the ever-hungry AI industry still vastly outstrip even Micron's best efforts to scale up. To frame it one way, a representative from a prominent consumer-focuse

Source: PC Gamer