Micron’s $1.8B Taiwan Fab Deal Accelerates DRAM Expansion Amid AI Demand Surge

Micron Technology's acquisition of Powerchip's P5 fab in Taiwan marks a strategic push to boost DRAM production capacity. The phased transition, set to conclude in Q2 2026, will see gradual output increases with material wafer volumes expected by late 2027. The deal includes collaboration on post-wafer processing, allowing Powerchip to maintain involvement in legacy DRAM lines while Micron takes operational control.

The MOVE coincides with Micron's $200 billion U.S. expansion, including new fabs in Idaho and a 600,000-square-foot facility in Clay, New York. Commerce Secretary Howard Lutnick attended Friday's groundbreaking, where executives noted multi-year construction timelines due to cleanroom and equipment complexities. Shares surged 8% on the news.

Memory markets remain tight as AI applications drive unprecedented demand for high-bandwidth chips. Micron's dual-track expansion—leveraging Asian manufacturing expertise while reshoring capacity—positions it to capitalize on both near-term shortages and long-term industry growth.