Micron’s PSMC acquisition could support DRAM supply from 2027
Micron Technology’s planned acquisition of Powerchip Semiconductor Manufacturing Corp.’s (PSMC) Tongluo fab in Taiwan could help strengthen global DRAM supply from 2027, according to market analyst TrendForce.
As previously reported, Micron intends to acquire the facility for US$1.8 billion, excluding production equipment. The transaction covers land, buildings and cleanroom space, and includes a long-term partnership for DRAM packaging services. The arrangement is intended to expand Micron’s capacity for advanced DRAM nodes while enabling PSMC to reinforce production based on more mature-node DRAM.
TrendForce said Micron plans to install both existing and new equipment in phases during 2026–2027, primarily for front-end manufacturing of advanced DRAM. Mass production is expected to begin in 2027. Capacity from the first phase at Tongluo is projected to account for more than 10% of Micron’s global capacity as of the fourth quarter of 2026, during the second half of 2027.
The background to the expansion is rising demand for advanced DRAM products such as HBM3e and DDR5, driven by AI-related applications. TrendForce estimates that Micron accounted for 25.7% of global DRAM revenue in the third quarter of 2025.
PSMC’s current DRAM production is mainly based on 25nm and 38nm process nodes. TrendForce assesses that, following Micron’s letter of intent, PSMC may license more advanced processes, strengthening its competitiveness while avoiding direct competition with Micron’s most advanced DRAM product lines.
