Micron Technology to Acquire Powerchip's P5 Fab for $1.8 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5m ago
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Source: NASDAQ.COM
- Acquisition Agreement: Micron Technology has signed an exclusive Letter of Intent to acquire Powerchip Semiconductor Manufacturing Corporation's P5 fabrication site in Miaoli County, Taiwan, for a total cash consideration of $1.8 billion, significantly enhancing Micron's competitive position in the global memory solutions market.
- Facility Size and Infrastructure: The acquisition includes an existing 300mm fab cleanroom of 300,000 square feet, which is expected to provide Micron with the necessary infrastructure to meet growing memory demand and enhance production capacity.
- Long-term Partnership: The LOI also aims to establish a long-term relationship between Micron and Powerchip, supporting Powerchip's legacy DRAM portfolio while providing support for Micron's post-wafer assembly processing, further solidifying their strategic collaboration.
- Production Plans and Timeline: The transaction is anticipated to close by the second quarter of 2026, at which point Micron will assume ownership of the P5 site and ramp up DRAM production in phases, with significant wafer output expected to begin in the second half of calendar 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.
