Micron Technology Acquires Powerchip's P5 Fab for $1.8 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Newsfilter
- Strategic Acquisition: Micron Technology has signed a Letter of Intent to acquire Powerchip's P5 fabrication site in Taiwan for $1.8 billion, which includes a 300,000 square foot cleanroom, aimed at addressing the growing global demand for memory solutions.
- Production Capacity Enhancement: This acquisition will bolster Micron's production capabilities in Taiwan, enabling the company to better serve its customers in a market where demand continues to outstrip supply.
- Synergistic Benefits: The proximity of the P5 fab to Micron's Taichung site is expected to create synergies that enhance overall operational efficiency and production capacity.
- Long-term Partnership: The acquisition also aims to establish a long-term relationship between Micron and Powerchip, supporting Powerchip's legacy DRAM portfolio, with significant DRAM wafer output expected to begin in the second half of 2027.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 228.21 USD with a low forecast of 170.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
29 Analyst Rating
26 Buy
3 Hold
0 Sell
Strong Buy
Current: 336.630
Low
170.00
Averages
228.21
High
325.00
Current: 336.630
Low
170.00
Averages
228.21
High
325.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.





