PSMC (Powerchip Semiconductor Manufacturing Corp., 6770.TW) announced on the 16th the completion of a $1.8 billion transaction with Micron Technology, Inc. (Nasdaq: MU) for its Tongluo plant. While transferring the facility to Micron, both parties will also begin collaborations at PSMC’s Hsinchu plant site to provide HBM/PWF foundry services and advance memory process technologies, according to their agreement. This strategic transformation is expected to bring strong growth momentum to PSMC’s new 3D AI foundry business.

Dr. Frank Huang, chairman of PSMC,stated that the company’s 3D AI Foundry Division has already entered AI application fields such as WoW (Wafer-on-Wafer), Interposers, and Si-Capacitors. In the future, the company will further provide HBM/PWF foundry services to Micron. At the same time, through the advancement of DRAM technology, PSMC will not only assist customers in entering the 8G DDR4 product line but also significantly increase the output value of wafer manufacturing, making the 3D AI foundry technology roadmap more complete.

It is understood that with the cooperation and assistance of PSMC, Micron will accelerate the installation of advanced DRAM production lines in the Tongluo plant's cleanrooms. PSMC has also begun readjusting the equipment configuration of its Hsinchu plant site and is gradually relocating equipment from the Tongluo plant to Hsinchu according to plan. Furthermore, with the formal completion of this transaction, PSMC will be able to strengthen its financial health in the short term and significantly reduce the cost burden caused by the lack of economies of scale at the Tongluo plant.