PSMC completes Miaoli plant sale to Micron, starts tech collaboration

Taiwan's PSMC has sold its Miaoli facility to Micron for USD 1.8 billion, launching a strategic partnership. The collaboration will focus on developing high-bandwidth memory (HBM) foundry services and advanced DRAM process technologies.

PSMC Sells Miaoli Plant, Partners with Micron

Taiwan-based Powerchip Semiconductor Manufacturing Corp. (PSMC) said on Monday that it has completed the sale of its facility in Miaoli to Micron Technology Inc. and will now start technology collaboration with the American memory chip supplier, in keeping with the sale agreement, as per a Focus Taiwan report.

With the transfer of the plant to the US tech giant, the two companies will now begin to work jointly on the development of high-bandwidth memory (HBM)/post-wafer-finish (PWF) foundry services and advanced memory process technologies, PSMC said in a statement, as per the news report.

Deal Terms and Future Growth

The strategic partnership with Micron is expected to boost momentum for PSMC's growth in its new 3D AI foundry business. Under the terms of the deal, PSMC has sold its plant in Miaoli's Tongluo Township to Micron for USD 1.8 billion, while the American company has agreed to provide technical assistance to PSMC to develop niche dynamic random access memory (DRAM) chip processes at its Hsinchu facility.

PSMC Chairman on Technological Advancement

In its statement, PSMC Chairman Frank Huang said his company's 3D AI foundry business has entered the field of AI applications such as wafer-on-wafer (WoW), interposers, and Si-capacitors. In the future, PSMC will provide HBM/PWF foundry services to Micron, he added.

"Through the advancement of DRAM technology, PSMC will not only assist customers in entering the 8G DDR4 (double data rate 4) product line, but will also significantly increase the output value of wafer manufacturing, making the 3D AI foundry technology roadmap more complete," Huang said. In addition, PSMC said, it will help Micron speed up the installation of advanced DRAM production lines in the Tongluo plant's cleanrooms.

Micron Outlines Expansion Plans

In a separate statement, Micron said the new Tongluo site is expected to support meaningful product shipments from the existing fab, starting in fiscal year 2028, as per the Focus Taiwan report.

The American company said it is also planning the next phase of expansion at the site, with construction set to begin by the end of fiscal year 2026 on a second facility of comparable scale, which will create about 270,000 square feet of additional cleanroom space. "The Tongluo facility complements our Taiwan operations and is a critical component of our global expansion plans," Manish Bhatia, Micron's executive vice president for global operations, was quoted as saying. (ANI)

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