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PSMC and Micron Seal $1.8B Plant Deal, Launch Tech Collaboration

Taiwan's Powerchip Semiconductor Manufacturing Corp. has finalized the $1.8 billion sale of its Miaoli facility to Micron Technology. The agreement initiates a strategic technology collaboration focused on high-bandwidth memory and advanced process development. PSMC Chairman Frank Huang stated this partnership will advance their 3D AI foundry business for applications like wafer-on-wafer and interposers. Micron plans to begin product shipments from the acquired plant in 2028 and is already planning a second major expansion at the site.

Key Points: PSMC Completes Miaoli Plant Sale to Micron, Starts Tech Partnership

  • $1.8 billion plant sale completed
  • Joint HBM/PWF tech development
  • Supports Micron's global expansion
  • New fab shipments expected by 2028
2 min read

PSMC, Micron to begin tech collaboration as sale of Miaoli plant completed

PSMC sells Miaoli facility to Micron for $1.8B. Companies begin joint development of HBM and advanced memory technologies.

"Through the advancement of DRAM technology... making the 3D AI foundry technology roadmap more complete - Frank Huang"

Taipei, March 16

Taiwan-based Powerchip Semiconductor Manufacturing Corp. said on Monday that it has completed the sale of its facility in Miaoli to Micron Technology Inc. and will now start technology collaboration with the American memory chip supplier, in keeping with the sale agreement, as per a Focus Taiwan report.

With the transfer of the plant to the US tech giant, the two companies will now begin to work jointly on the development of high-bandwidth memory (HBM)/post-wafer-finish (PWF) foundry services and advanced memory process technologies, PSMC said in a statement, as per the news report.

The strategic partnership with Micron is expected to boost momentum for PSMC's growth in its new 3D AI foundry business.

Under the terms of the deal, PSMC has sold its plant in Miaoli's Tongluo Township to Micron for USD 1.8 billion, while the American company has agreed to provide technical assistance to PSMC to develop niche dynamic random access memory (DRAM) chip processes at its Hsinchu facility.

In its statement, PSMC Chairman Frank Huang said his company's 3D AI foundry business has entered the field of AI applications such as wafer-on-wafer (WoW), interposers, and Si-capacitors.

In the future, PSMC will provide HBM/PWF foundry services to Micron, he added.

"Through the advancement of DRAM technology, PSMC will not only assist customers in entering the 8G DDR4 (double data rate 4) product line, but will also significantly increase the output value of wafer manufacturing, making the 3D AI foundry technology roadmap more complete," Huang said.

In addition, PSMC said, it will help Micron speed up the installation of advanced DRAM production lines in the Tongluo plant's cleanrooms.

In a separate statement, Micron said the new Tongluo site is expected to support meaningful product shipments from the existing fab, starting in fiscal year 2028, as per the Focus Taiwan report.

The American company said it is also planning the next phase of expansion at the site, with construction set to begin by the end of fiscal year 2026 on a second facility of comparable scale, which will create about 270,000 square feet of additional cleanroom space.

"The Tongluo facility complements our Taiwan operations and is a critical component of our global expansion plans," Manish Bhatia, Micron's executive vice president for global operations, was quoted as saying.

- ANI

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Reader Comments

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Priya S
Interesting partnership. HBM is crucial for AI, and Micron getting this fab will boost their capacity. For India, the lesson is clear: we need to attract such big players to set up shop here, not just design centers but actual manufacturing. The PLI scheme needs to move faster!
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Rohit P
$1.8 billion! That's the scale of investment we are talking about. While Taiwan is consolidating its position, our Dholera plant story seems to be moving at a snail's pace. Hope our policymakers are taking notes. We can't afford to miss this bus.
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Sarah B
Working in tech, this is a smart move by both. PSMC gets tech help for niche DRAM, Micron gets a ready fab and a partner for HBM. The global supply chain is getting reshaped. India has the talent; we just need the right infrastructure and policy certainty to become a player.
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Karthik V
With all due respect to this deal, I feel the article is a bit one-sided, just reporting the corporate statements. What about the workers at the Miaoli plant? Were there job guarantees? Such large acquisitions often impact local employment. That perspective is missing.
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Michael C
Fiscal year 2028 for meaningful shipments? That's a long timeline. Shows how complex and capital-intensive chipmaking is. India's ambitions are good, but we must be patient and persistent. It's a marathon, not a sprint. Hopefully, the Micron plant in Gujarat starts yielding results sooner. 🤞

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