Micron Technology has executed an exclusive Letter of Intent to purchase Powerchip Semiconductor Manufacturing Corporation’s P5 fabrication site in Tongluo, Taiwan, for $1.8 billion in cash. The deal covers a 300,000-square-foot 300 mm cleanroom and establishes a strategic partnership for post-wafer assembly processing with PSMC. Subject to regulatory approval, the acquisition is expected to close in the second quarter of 2026, with phased DRAM wafer production ramping in the second half of 2027. This move augments Micron’s existing Taichung operations and is projected to add meaningful capacity to address a global memory shortage driven by AI workloads.

On January 15, 2026, Micron commenced construction of a multi-fab memory manufacturing campus in Clay, New York, representing a $100 billion investment. The site is designed to accommodate up to four fabrication units and will become the nation’s largest domestic semiconductor facility. Initial clean-room construction and equipment installation are slated for completion by 2030, with first wafer starts expected that same year. The project is part of a broader $200 billion capital plan in the U.S., which also includes two new fabs in Idaho, aimed at ensuring supply resilience amid surging demand for high-bandwidth memory in AI data centers.

Micron CEO Sanjay Mehrotra highlighted accelerating AI-driven demand at a recent conference, forecasting that industry-wide memory capacity will remain constrained through 2027. He noted that 2025 server memory growth exceeded initial 10% forecasts, finishing in the high teens, and that PC memory and storage also outperformed expectations. To meet this demand, Micron plans to commission additional modules in existing fabs while bringing new U.S. facilities online, underpinning operating-margin expansion from 25% to over 45% year-over-year. Analyst consensus anticipates Micron’s earnings per share to exceed $40 within 18 months, reflecting sustained pricing power in both DRAM and high-bandwidth memory segments.