Memory giant Micron 56.9 billion TWD acquisition of Powerchip's 300mm copper factory, Chairman Huang Chongren's internal memo leaks

Micron Technology, the American memory giant, announced that it has signed a Letter of Intent (LOI) with PSMC to invest approximately US$1.8 billion (about NT$56.9 billion) to acquire PSMC’s 300mm wafer fab P5 and related cleanroom assets located in Tongluo, Miaoli. The transaction is expected to be completed as early as the second quarter of 2026, marking the latest large-scale investment amid the AI memory expansion wave.

Micron accelerates Taiwan expansion to seize AI memory capacity timing

Micron stated that the Tongluo P5 plant will become a key part of its global manufacturing layout, further consolidating Taiwan’s position as a hub for Micron’s DRAM production and enhancing supply capabilities in AI servers, high-bandwidth memory (HBM), and enterprise-grade memory markets. Compared to building a new wafer fab from scratch, directly acquiring an existing cleanroom can significantly shorten construction timelines and reduce execution risks, allowing Micron to release new capacity more quickly amid the memory cycle driven by AI.

Industry analysts note that as AI applications boost demand for high-end DRAM and HBM, 300mm fabs that can quickly transition to mass production and meet regulatory and community requirements are becoming increasingly scarce worldwide. Micron’s $1.8 billion investment reflects its optimistic outlook on medium- to long-term AI memory demand and a high regard for time value.

PSMC monetizes assets and shifts toward light capital and strategic partnerships

For PSMC, selling the Tongluo P5 plant provides a substantial one-time cash inflow, helping improve its capital structure and fund future investments in mature processes, advanced packaging, and heterogeneous integration, while reducing capital-intensive pressure from a single plant.

Although PSMC will no longer hold a 300mm fab, both parties have established a framework for future cooperation in the LOI, including long-term manufacturing collaborations for legacy DRAM, backend process, and technology exchanges. This enables PSMC to gradually shift from heavy capital self-built capacity to a role focused on technology and manufacturing services, continuing its participation in the memory supply chain.

Chairman’s Internal Letter: No layoffs, inclusion in HBM supply chain

PSMC Chairman Huang Chong-ren stated in an internal letter that the project was approved by the board on January 16, 2026. The Tongluo P5 plant will be transferred in phases to Taiwan Micron within 18 months after the formal contract signing to help accelerate Micron’s DRAM layout in Taiwan. Equipment and personnel from P5 will be gradually relocated back to Hsinchu without layoffs or operational disruptions.

He also revealed that Micron will prepay to reserve PSMC’s backend HBM wafer manufacturing (PWF) capacity, officially integrating PSMC into its HBM supply chain and establishing a long-term foundry partnership. Additionally, Micron will assist PSMC in refining its niche DRAM foundry business and entering next-generation DRAM process technology.

Full Text of Chairman Huang Chong-ren’s Internal Letter

Dear colleagues,

Today, I want to share an important milestone in our company’s development. This is not only a major adjustment to PSMC’s operational strategy but also a crucial step toward the AI era.

On January 16, 2026, the board approved that the company will sign an LOI with Micron Technology to transfer the Tongluo P5 plant to Taiwan Micron in phases within 18 months of the formal contract, helping Micron accelerate and expand its DRAM footprint in Taiwan. Equipment and personnel from P5 will be gradually relocated back to Hsinchu without layoffs or operational interruptions.

Furthermore, Micron will prepay to reserve our PWF capacity, officially including PSMC in its HBM supply chain and establishing a long-term foundry partnership. Micron will also help PSMC improve its niche DRAM foundry business and enter next-generation DRAM process technology. Through collaboration with a world-class memory giant, the company will optimize its financial structure, technological blueprint, and operational quality, moving toward stable profitability and sustainable development.

During this transformation, I understand that everyone is most concerned about job security. On behalf of the company, I solemnly promise:

1. No proactive layoffs: The company regards every colleague as its most valuable asset. This adjustment is not intended to reduce staff but to reallocate resources and focus on more competitive strategic goals.

2. Proper arrangements for P5 employees: For employees at the Tongluo plant, the company will implement an “orderly relocation” plan. We need everyone’s full participation and will guide employees toward higher-value production and technological development.

Through this resource reallocation, we will phase out old equipment and low-margin product lines at the Hsinchu plant, strengthen operational efficiency, and transform into a professional wafer foundry focused on AI applications, concentrating on high-value products such as 3D AI DRAM, WoW (Wafer on Wafer), PWF (Post Wafer Fabrication), interposers, silicon capacitors (IPD), PMIC, GaN/MOSFET, IGZO, and other products used in AI servers and edge computing.

This will be PSMC’s fourth transformation. I thank every colleague for your trust and support during this period of change. Let us together create

a new AI era belonging to PSMC.

Wishing everyone smooth work and safety.

Chairman Huang Chong-ren