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Micron completes $1.8 billion Tongluo fab purchase and partners with PSMC for HBM post-wafer fabrication
Monday, March 16, 2026 at 04:38 AM
Following Micron's $1.8 billion acquisition of PSMC's Tongluo fab, the two companies are entering a foundry partnership for HBM and post-wafer fabrication services. PSMC will provide specialized processes including wafer testing, die screening, thinning, and dicing to support Micron's AI memory production.
Context
On March 15, 2026, Micron Technology completed the $1.8 billion acquisition of Powerchip Semiconductor Manufacturing Corp’s (PSMC) P5 fabrication site in Tongluo, Taiwan. This facility includes a 300,000-square-foot cleanroom which Micron will immediately begin retrofitting to support the production of leading-edge DRAM, specifically High Bandwidth Memory (HBM). The site is expected to begin meaningful product shipments in fiscal 2028, with a second facility of comparable scale planned for construction by the end of fiscal 2026 to meet surging AI-driven demand.
In tandem with the sale, Micron and PSMC have entered a strategic partnership where PSMC will provide Post-Wafer Fabrication (PWF) services, including wafer testing and thinning, and collaborate on advanced memory process technologies. This agreement allows Micron to accelerate its HBM roadmap while providing PSMC with technical assistance to develop niche DRAM processes. For PSMC, the deal improves short-term financial health and shifts its focus toward a 3D AI foundry business model to capture more high-value AI infrastructure work.
Sources (8)
Micron Completes Acquisition of PSMC’s Tongluo P5 Site in Taiwan | Micron TechnologyPSMC completes plant sale to US giant Micron - Taipei TimesMicron completes acquisition of PSMC's Tongluo P5 site in TaiwanMicron in High-Volume Production of HBM4 Designed for NVIDIA Vera Rubin, PCIe Gen6 SSD and SOCAMM2 - GlobeNewswireMicron secures $318 million Taiwanese subsidy for HBM R&D as AI memory arms race intensifies — three-year project aims to develop leading-edge, high-performance memory | Tom's HardwarePSMC Completes P5 Plant Transaction; 3D AI Foundry Set ...Micron purchases PSMC fabrication site in Taiwan for $1.8BMicron Doubles Down on Taiwan With Plans for Second AI-Focused Chip Facility - US Market & Sectors - Vested
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