Rumor
Micron explores securing DRAM capacity at Powerchip Tongluo site through equipment investment model
Sunday, December 21, 2025 at 08:54 PM
Micron is reportedly in talks with Powerchip Technology to secure memory production capacity at Powerchip's Tongluo site. Powerchip has approximately 32,000 wafers per month of memory capacity at its first Tongluo fab and available land for second and third phases. Under the proposed model, partners like Micron would purchase and install their own equipment in Powerchip's cleanrooms to expedite production expansion and bypass lengthy environmental assessments. The three combined phases at Tongluo could eventually reach over 110,000 wafers per month.
Context
Micron Technology is negotiating with Powerchip Semiconductor Manufacturing Corp (PSMC) to secure DRAM capacity at the Tongluo site through a specialized equipment investment model. Under this arrangement, Micron would install its own manufacturing tools within PSMC's existing cleanrooms to bypass the multi-year timelines required for environmental assessments and shell construction. This strategy could accelerate production by over a year, addressing a critical global shortage of cleanroom space as memory prices climb heading into 2025.
The Tongluo facility’s first phase offers 40,000 wafers per month, with 32,000 dedicated specifically to memory. Total site capacity could eventually exceed 110,000 wafers monthly across three planned phases. While Micron continues to utilize TSMC for logic processes and Powertech Technology for backend services, this partnership focuses on rapid capacity injection. By leveraging PSMC's infrastructure, Micron aims to meet urgent AI-driven demand for high-performance memory, securing a significantly faster route to market than traditional greenfield fab construction allows.
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