PSMC Advances P3 Fab DRAM Upgrade

After selling its Tongluo wafer fab to Micron and signing a strategic letter of intent, Powerchip Semiconductor Manufacturing Corp. (PSMC) has announced a comprehensive DRAM process improvement initiative. The move aims to meet growing demand from memory design clients for higher-capacity, faster DRAM, while capitalizing on the ongoing shortage and price surge in the market.

Currently, PSMC's 12-inch wafer fab in Hsinchu operates at a monthly DRAM capacity of 50,000 wafers, primarily using 2x-nanometer processes to offer DRAM and Flash foundry services. With global DRAM demand driven by AI applications creating long-term supply constraints, the company has faced increasing pressure from clients and decided to invest in advancing its DRAM manufacturing capabilities.

To accelerate the plan, PSMC's board recently approved a capital increase for new equipment investments. These upgrades will align with the second-quarter finalization of the Tongluo sale and strategic cooperation agreement with Micron. Following approval at PSMC's 2026 annual shareholders meeting, the company will begin procuring and installing equipment to upgrade its P3 fab, which currently produces over 30,000 DRAM wafers per month.

Under the signed letter of intent, PSMC will continue providing advanced back-end DRAM packaging services to Micron, while Micron will support process improvements at PSMC's P3 fab. This rapid execution of technology upgrades will strengthen PSMC's DRAM foundry capabilities, enabling clients to develop higher-capacity, faster DRAM products. The initiative also enhances PSMC's wafer-on-wafer (WOW) services, helping meet the needs of large-scale AI-focused end customers.