TLDR
- Micron stock surged after a $1.8B Taiwan fab buy to expand future DRAM output.
- The Powerchip P5 site adds major cleanroom space for phased DRAM growth from 2027.
- TrendForce says the fab could add over 10% to Micron’s late-2026 DRAM capacity.
- Powerchip shares jumped as the deal deepens long-term DRAM packaging cooperation.
- The acquisition strengthens Micron’s AI memory supply as HBM demand accelerates.
Micron (MU) Stock moved to strengthen its global footprint after securing a deal for a major Taiwan fab, and its shares rose sharply. The stock closed at $362.75 with a 7.76% gain, and it later traded flat near $363. The move underscored Micron’s push to expand DRAM capacity as demand keeps rising.
Micron Boosts DRAM Output Through Taiwan Fab Purchase
Micron confirmed a plan to acquire Powerchip’s P5 fabrication site in Tongluo for $1.8 billion in cash, and the company aims to integrate it quickly. The site provides 300,000 square feet of cleanroom space, and this addition strengthens Micron’s roadmap for long-term DRAM production. Moreover, the company expects fresh wafer output to begin in the second half of 2027.
Micron highlighted that the expansion supports tight memory conditions beyond 2026, and the company continues scaling HBM and DRAM. The new fab allows phased production growth, and it matches rising global demand for advanced memory. Furthermore, Micron’s statement connected the acquisition with broader supply-chain planning.
TrendForce said the fab will lift Micron’s advanced-process DRAM capacity, and the first phase will meaningfully affect global output. The firm noted that the 2027 contribution equals more than 10% of Micron’s fourth-quarter 2026 capacity. Consequently, the analysis signals meaningful supply expansion.
Powerchip Gains on Deal While Strengthening Long-Term Ties
Powerchip saw its shares rise nearly 10% after Micron announced the acquisition, and the surge reflected expectations for deeper cooperation. The company produces both legacy and memory chips, and it stands among Taiwan’s major semiconductor foundries. Additionally, the partnership expands Powerchip’s role in DRAM advanced-packaging work.
Powerchip confirmed plans for a long-term foundry relationship that will support Micron’s DRAM packaging needs, and the arrangement strengthens both sides. The company expects Micron to help enhance its specialty DRAM processes, and the collaboration aligns with Taiwan’s strong semiconductor base. Moreover, the companies outlined a structure that supports predictable supply agreements.
Regulators will review the transaction before closing, and Micron expects completion by the second quarter of 2026. The move reinforces Taiwan’s role in global memory production, and Micron strengthens its 30-year presence on the island. Furthermore, the company maintains major DRAM and HBM operations in Taichung.
Micron Extends Market Strength as Memory Demand Intensifies
Micron continues to grow its position as one of three major HBM suppliers, and the company supports expanding AI-related workloads. The acquisition increases its flexibility across advanced processes, and it aligns with rising global demand for high-performance memory. Additionally, the deal supports its long-term output strategy.
Micron saw major equity gains in 2025 with a 240% rise, and the move far exceeded the SOX index. The surge reflects strong demand for its memory lines, and it reinforces confidence in its scaling plans. Likewise, the Taiwan expansion fits directly into this upward trend.
Micron operates as Taiwan’s largest foreign direct investor, and its facilities support critical DRAM and HBM product flows. The new acquisition strengthens this network, and it anchors future capacity additions. Consequently, Micron positions itself for sustained growth as memory supply tightens globally.
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