Micron Technology (MU) is spending $1.8 billion U.S. to acquire Powerchip Semiconductor Manufacturing Corp. (TPE:6770), a major microchip foundry based in Taiwan.
The purchase comes as Micron races to increase its manufacturing capacity amid a surge in demand for microchips and processors that power the artificial intelligence (A.I.) revolution.
The memory chips made my Micron are a vital component of A.I. data centres and accelerators. Micron’s high-bandwidth microchips work in tandem with processors from Nvidia (NVDA).
Executives at Micron announced over the weekend that they’ve signed a letter of intent to acquire Powerchip Semiconductor Manufacturing.
“This acquisition of an existing cleanroom complements our current Taiwan operations and will enable Micron to increase production and better serve our customers,” said the company.
Micron also recently broke ground on a new $100 billion U.S. semiconductor manufacturing facility located in upstate New York near Syracuse.
Once the facility is completed and fully operational in 2030, it is expected to generate 50,000 jobs in New York state, according to the company.
MU stock is already up 15% this year and has more than tripled in the past 12 months. Micron’s shares are currently trading at $362.75 U.S. each.
