[News] Micron, SanDisk Reportedly Turn to PSMC to Fast-Track Memory Output Amid Tight Supply

Rising memory prices are pushing major manufacturers to seek additional capacity. According to Economic Daily News, sources say Micron is in talks with Powerchip Semiconductor Manufacturing Corporation (PSMC) to produce memory at the company’s newly completed Tongluo fab in Miaoli, Taiwan, which still has room to add at least 40,000–50,000 wafers of monthly capacity, with the goal of bringing new output online as quickly as possible. The report adds that sources have also previously indicated SanDisk was seeking cooperation with PSMC as well.

Citing industry sources, the report notes that building a new wafer fab typically takes one to two years or more. By contrast, PSMC’s Tongluo fab has already completed construction and was designed from the outset with memory manufacturing processes as its core focus.

PSMC’s Ready-Built Tongluo Facility Meets Tight Memory Supply

The report adds that the Tongluo fab has a maximum monthly capacity of about 40,000 to 50,000 wafers, but currently has equipment installed for only just over 8,000 wafers, implying an equipment utilization rate of roughly 20% and leaving substantial room for expansion. For international memory makers urgently seeking new capacity amid extremely tight supply conditions, a fab that has already been built but has not yet been fully equipped represents a highly attractive option, the report says.

Micron said at its earnings call last week that it sees an urgent need to increase memory investment and add new capacity, and that it will raise fiscal 2026 capital expenditure to US$20 billion from a previously planned US$18 billion. As Reuters notes, Micron CEO Sanjay Mehrotra said he expects memory markets to remain tight beyond 2026 and that, in the medium term, the company expects to meet only about half to two-thirds of demand from several key customers.

As noted by Economic Daily News, citing sources, Micron and PSMC have discussed at least three potential cooperation models. The first is a pure foundry model. The second is a technology-transfer plus equipment relocation model. The third option is a distribution model, whereby PSMC would retain a portion of the memory wafers it produces for its own sales, which is viewed as the most favorable option for PSMC.

Concerns Over Cycle Timing and Process Gaps

However, Liberty Times notes that while Micron already has an existing DDR4 cooperation with PSMC, some industry sources caution that, given ordering equipment for capacity expansion typically takes at least a year to a year and a half, even if rumors of further collaboration prove true, the memory market could once again slip into oversupply by the time PSMC completes its expansion.

In addition, Commercial Times states, citing institutional investors, that there remains a significant gap between PSMC’s DRAM and NAND process technologies and those of leading international memory makers. As a result, the structure of any potential cooperation between the two sides has yet to be clarified, and meaningful revenue contributions are unlikely in the near term, the report notes.

Read more

• [News] Micron Reveals Three Culprits Behind Memory Crunch—and Why It Won’t Ease Soon
• [News] SanDisk, Samsung Reportedly Delay NAND Delivery, Hitting Transcend with 50–100% Price Spike

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