Micron to Install Equipment at Tongluo Plant on March 26 as PSMC Partnership Targets Advanced AI Packaging

Demand for high-bandwidth memory (HBM) is rising as AI server deployments grow. To expand its advanced DRAM capacity, Micron Technology acquired Powerchip Semiconductor Manufacturing Corp.'s P5 wafer fab at the Tongluo Science Park in Miaoli for $1.8 billion in cash. The deal also shifts PSMC from merely selling the facility to providing outsourced HBM back-end processing and 3D wafer stacking services, giving it a foothold in the AI hardware supply chain.

The companies announced the deal on January 17, 2026. Micron completed the acquisition and took ownership of the P5 site on March 16, followed by an equipment installation and unveiling ceremony on March 26 that marked the start of cleanroom renovations and equipment deployment. PSMC expects to receive NT$56.7 billion and will work with Micron on HBM and PWF contract manufacturing at its Hsinchu facilities.