Micron has been very busy lately, spending $2.5 billion USD to purchase Elpida and another $334 million USD to purchase another 24% of DRAM maker Rexchip from Powerchip. The latter of those purchases gives Micron a total of 89% of the existing shares of Rexchip which may not give them outright ownership of Rexchip but gives them such a huge majority that they can determine the outcome of any vote which is presented to shareholders. Rexchip brings a single 300mm Fab working on 30nm process to the table, which gives Micron a bit more manufacturing capability to utilize for what is likely to be a busy season for them.
The Elpida purchase is much bigger for both the industry and Micron, especially as they decided to buy the company outright instead of purchasing a subsidiary or only the IP of Elpida. Instead the company will remain intact for the near future though there will likely be changes to the executive structure as they are integrated with Micron. Not only does this purchase give them access to all property, intellectual or physical, that Elpida currently possesses it give Micron an in at Apple as it was Elpida that supplied much of the chips used by Apple. That would put Micron in the enviable position of supplying both PC and Apple products. DigiTimes breaks down the deal here.
"Micron Technology and Elpida Memory's trustees have signed a definitive sponsor agreement for Micron to acquire Elpida, according to the US memory chipmaker. The agreement has been entered into in connection with Elpida's corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court.
Micron revealed that under the agreement, JPY200 billion (US$2.5 billion) total consideration and less certain reorganization proceeding expenses will be used to satisfy the reorganization claims of Elpida's secured and unsecured creditors. Micron will acquire 100% of the equity of Elpida for JPY60 billion to be paid in cash at closing."
Here is some more Tech News from around the web:
- Users enraged by Cisco's cloudy 'upgrade' to Linksys routers @ The Register
- Mozilla's 'Boot to Gecko' morphs into Firefox OS @ The Register
- The impact of Ivy Bridge on current processor pricing @ eTeknix
- Creating a Bootable DOS Flash Drive the Easy Way @ Techgage
- Kensington Absolute Power Dual USB Wall Charger Review @ NikKTech
- The TR Podcast 114: Gigahertz graphics and high-def tablets