Micron PSMC factory acquisition 2026: A $1.8B Shift in Taiwan’s Chip Landscape

One company's exit is another's expansion. In a deal that underscores the diverging fortunes of the semiconductor industry, Taiwanese chipmaker PSMC has agreed to sell a domestic factory to US-based Micron Technology for a substantial $1.8 billion.

Strategic Motives Behind the Micron PSMC factory acquisition 2026

According to reports by Nikkei, PSMC is offloading the facility to shore up its finances as the market for legacy chips continues to slump. While advanced nodes are thriving under the AI boom, older manufacturing processes have seen a cooling demand. The $1.8 billion injection is expected to help PSMC pivot toward advanced packaging and other high-growth sectors.

Micron’s Push for DRAM Dominance

For Micron, the acquisition is a calculated move to bolster its DRAM production. As AI applications demand faster and more efficient memory, expanding physical capacity in Taiwan—a global hub for semiconductor talent—is a logical step. This move isn't just about volume; it’s about securing a stable supply chain in a geopolitically sensitive region.