Micron to Buy Powerchip Fab for $1.8 Billion, Shares Surge Nearly 10%

Shares of Taiwan’s Powerchip Semiconductor Manufacturing Corp jumped nearly 10% on Monday following news that U.S. memory chip giant Micron Technology plans to acquire one of Powerchip’s fabrication facilities in Taiwan, highlighting growing strategic investments in the global semiconductor industry.

Micron Technology announced on Saturday that it had signed a letter of intent to purchase Powerchip’s P5 fabrication plant located in Tongluo, Miaoli County, for $1.8 billion in cash. The transaction, once finalized, would mark a significant expansion of Micron’s manufacturing footprint in Taiwan, a key hub for global semiconductor production.

The planned acquisition reflects Micron’s long-term strategy to strengthen its supply chain resilience and enhance its advanced memory manufacturing capabilities. The P5 fab is expected to support Micron’s production of DRAM and other memory products, which are critical components used in smartphones, data centers, artificial intelligence applications, and consumer electronics. Industry analysts view the deal as a move that could help Micron secure stable capacity amid rising geopolitical risks and increasing global competition for chip manufacturing resources.

For Powerchip, the sale represents an opportunity to unlock value from its assets while refocusing on other strategic priorities. Investors responded positively, driving the company’s stock sharply higher during Monday trading. Market participants see the transaction as beneficial for Powerchip’s balance sheet, providing substantial cash inflow that could be used to reduce debt, invest in new technologies, or return value to shareholders.

The deal also underscores Taiwan’s continued importance in the global semiconductor ecosystem. Despite ongoing efforts by the United States and other countries to localize chip production, Taiwan remains central to advanced semiconductor manufacturing due to its skilled workforce, established infrastructure, and deep industry expertise.

While the agreement is currently a non-binding letter of intent, both companies indicated that they will work toward finalizing definitive terms, subject to regulatory approvals and customary closing conditions. If completed, the acquisition would further cement Micron’s presence in Taiwan and reinforce its position as one of the world’s leading memory chipmakers, while reshaping Powerchip’s role in the evolving semiconductor landscape.