On March 16, Taiwan-based semiconductor company PSMC officially announced the completion of its $1.8 billion sale of the Tongluo P5 wafer fab in Miaoli County to Micron, marking a new phase in their strategic partnership.

Following the facility transfer, both companies will advance core collaboration projects at PSMC's Hsinchu site, focusing on HBM/PWF foundry services and memory process technology development.

PSMC Chairman Frank Huang stated the company's 3D AI foundry division will enrich its technology portfolio by providing HBM/PWF services to Micron. Advancing DRAM technology will help customers access 8G DDR4 products, increase foundry revenue, and strengthen PSMC's position in the AI supply chain.

Micron will accelerate advanced DRAM production lines at the Tongluo P5 fab, targeting next-generation DRAM and HBM products for AI applications. Meanwhile, PSMC is relocating equipment from the Tongluo facility to its Hsinchu site to optimize capacity and phase out low-margin products.

ICgoodFind: This deal optimizes PSMC's structure while accelerating Micron's expansion, reshaping the AI memory and foundry landscape.