[News] Micron Reportedly Schedules March 26 Tool Move-In at PSMC Tongluo Fab, Signaling Next Deal Phase

After formally signing an exclusive letter of intent to acquire Powerchip Semiconductor Manufacturing Corp. (PSMC)’s P5 fab in Tongluo for US$1.8 billion, Micron has begun moving the deal forward. According to TechNews, the memory giant recently sent out a confidential invitation announcing a tool move-in ceremony on March 26, 2026.

TechNews describes the event as a key milestone in Micron’s expansion, as it marks the most tangible progress in the deal. The ceremony is scheduled from 11:30 a.m. to 1:30 p.m., and attendance will be tightly controlled: each supplier may send only one representative, with participants required to confirm their name and title by March 13, TechNews notes.

According to Micron, the transaction is anticipated to close by Q2, pending final agreements and regulatory approvals. Once completed, Micron will take ownership and operational control of the P5 site and begin equipping the fab to ramp DRAM production in phases, while PSMC gradually relocates its Tongluo operations.

As previously reported by the Economic Daily News, Micron has also prepaid for backend wafer manufacturing capacity for HBM, effectively bringing PSMC into its advanced packaging supply chain. TechNews adds that under the partnership, PSMC is targeting two key technologies: Wafer-on-Wafer (WoW) 3D stacking and interposer technology, both critical for advanced AI chip packaging.

TrendForce projects that Micron plans to deploy both existing and new equipment in phases during 2026–2027, mainly front-end tools for advanced DRAM manufacturing, with mass production expected in 2027. The capacity from Phase 1 at Tongluo in the second half of 2027 is expected to surpass 10% of Micron’s global capacity as of the fourth quarter of 2026, according to TrendForce.

Notably, Micron has been on a broader acquisition streak to support surging memory demand, with PSMC’s P5 fab in Tongluo just the latest addition. Prior to the Tongluo deal, Micron acquired two fabs in Tainan from AU Optronics, a Taichung fab from AUO Crystal, and another Taichung facility from Glorytek, repurposing them for wafer probe, metallization, HBM TSV processes, and other backend operations.

Read more

• [News] Micron Reportedly Weighs Acquiring PSMC 12-Inch Tongluo Fab, With Multiple Partners Also Interested
• [News] Micron, SanDisk Reportedly Turn to PSMC to Fast-Track Memory Output Amid Tight Supply

(Photo credit: Micron)