A survey conducted by TrendForce reveals that Micron Technology is set to invest a hefty US$1.8 billion to acquire Powerchip Semiconductor's plant in Tongluo. Following this acquisition, the two companies will forge a long - term partnership centered around DRAM advanced packaging foundry services.

This strategic collaboration is poised to bring about multiple benefits. For Micron Technology, it will pave the way for an expansion of its advanced - process DRAM production capacity. On the other hand, Powerchip Semiconductor will see an enhancement in its supply capacity for mature - process DRAM.

Industry analysts anticipate that by 2027, the global DRAM industry will witness a notable growth in supply. Specifically, the first phase of Micron Technology's Tongluo project is slated to kick off production in the latter half of 2027. Once operational, its production capacity is projected to account for more than 10% of Micron Technology's global capacity in the fourth quarter of 2026.