Micron acquires PSMC’s Tongluo facility to accelerate capacity expansion, alongside agreements for DRAM technology licensing and advanced packaging. This strategic partnership resolves Micron’s AI-driven bottlenecks and enhances PSMC’s mature process capabilities, significantly boosting future industry supply and technical depth.

Key Highlights

• Strategic Acquisition: Micron acquires the Tongluo facility, establishing a long-term alliance with PSMC involving technology licensing and advanced packaging services.
• Micron's Expansion: The deal significantly shortens construction lead times. New capacity will integrate into existing systems, accelerating advanced DRAM and HBM output to meet surging AI demand.
• PSMC's Upgrade: PSMC gains capital and consolidates resources, utilizing Micron’s licensing to overcome R&D bottlenecks and enhance the competitiveness of its mature product lines.
• Supply Outlook: This resource integration is expected to drive upward revisions in future global DRAM supply, alleviating potential market shortages.

Table of Contents

1. Micron to Acquire PSMC’s Tongluo P5 Fab to Contribute to DRAM Supply for 2027
2. Tongluo Fab’s Clean Rooms to Grant Micron’s DRAM Capacity for 2027
3. PSMC’s Capacity Centralized at Hsinchu Fab with Optimization on Logic IC Product Mix
4. PSMC Will Regain DRAM Process Upgrade Capabilities; Its Market Share Is Expected to Rebound
   • Distribution of Micron's Production Capacity by Region
5. PSMC Will Enter HBM Back-End Processing

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