Chipmakers are quickly ramping up their production capacity as the soaring demand for semiconductors only continues to increase with the growth of artificial intelligence (AI) servers.  Micron Technology, the world’s third-largest memory chipmaker, announced Monday that it had signed a letter of intent to acquire the P5 fab of Powerchip Semiconductor Manufacturing Corporation in Tongluo, Taiwan, for $1.8 billion.  With the acquisition, Micron will gain a facility with a floor area of 27,871 square meters (300,000 square feet). Using the upgrade, Micron plans to significantly expand dynamic random access memory (DRAM) production starting in the second half of 2027.  “This strategic acquisition [...] complements our current Taiwan operations and will enable Micron to increase production and better serve our customers in a market where demand continues to outpace supply,” said Manish Bhatia, executive vice president of Global Operations at Micron.  The move is seen as a pre-emptive step to address the prolonged supply shortage in the memory sector. As building a new fab typically takes more than five years, acquiring an existing facility allows companies to begin mass production much sooner.  Bhatia added that general-purpose memory chips for smartphones and PCs are now in short supply due to the industry’s focus on expanding high bandwidth memory (HBM) production.  The global memory market has entered a “hyper bull” phase, surpassing the 2018 peak, according to an assessment by market research firm Counterpoint Research. Memory prices are projected to rise by 40 to 50 percent quarter-on-quarter in the first quarter of 2026, with further increases expected in the second quarter.  Korean memory giants Samsung Electronics and SK hynix, ranked first and second in global capacity, are also accelerating their expansion.  SK hynix plans to begin operations at the first fab of its semiconductor cluster in Yongin ahead of schedule, targeting February 2027. Its M15X plant in Cheongju has already begun HBM mass production.  Samsung is pushing for early operation of its P4 fab in Pyeongtaek and has resumed construction on the P5 fab, aiming for full operations by 2028.  However, trade-related variables are complicating the race to scale up. Samsung and SK hynix may invest between 100 trillion won and 120 trillion won ($67 billion to $81 billion) to build memory fabs in the United States between 2027 and 2030, according to a report by Nomura Securities on Tuesday.  The forecast assumes both companies would need to shift approximately 40 percent of their DRAM production to the United States to avoid potential tariff barriers.  However, industry insiders question the assumption. The percentage of Korean semiconductors exported to the United States was 7.5 percent in 2024 and is expected to be around 8 percent in 2025, according to data from the Korea International Trade Association and the Ministry of Trade, Industry and Resources.  Critics point out that Nomura’s projection is based on a worst-case scenario in which even indirect exports entering the United States via third countries such as Taiwan or China would be subject to tariffs.  If large-scale investment in the U.S. materializes as predicted, concerns may grow over profitability and the hollowing-out of the domestic industry.  The report estimated that building a fab in the United States would cost 20 to 30 percent more than in Korea, with operating costs about 40 percent higher — significantly reducing operating margins.  “This shortage of general-purpose DRAM is a structural result of HBM production expansion, making a return to past levels of oversupply unlikely,” said Lee Jong-hwan, a professor of system semiconductors at Sangmyung University. “Still, strategic investments should take trade risks into account.”  (ICE SEOUL)

Fonte notizia: Korea Joong Daily