Micron recasts Intel JV, includes emerging memory
LONDON – Micron Technology Inc. (Boise, Idaho) has announced that is has acquired Intel's 18 percent interest in IM Flash Singapore LLP and the assets of IM Flash Technologies LLC located at Micron's Virginia wafer fab.
At the same time the scope of the IM Flash Technologies joint venture between Intel and Micron has been expanded to include certain emerging memory technologies and Intel has prepaid $300 million against future purchases of NAND flash memory. Micron has also borrowed $65 million from Intel payable with interest in approximately equal quarterly installments over two years.
The announcement was made as part of the Micron's financial report for the third fiscal quarter ended May 31, 2012. Micron did not disclose the nature of the emerging memory technologies included in the Intel agreement.
Mark Durcan, CEO of Micron, told analysts in a conference call that: "The technology team made solid progress on a number of new technology nodes including NAND, DRAM, NOR, PCM, and some emerging memory part types." PCM stands for phase-change memory, a memory type worked on by Intel in the past and inherited by Micron with its acquisition of Numonyx NV in May 2010.
As a result of the latest changes Micron will now be entitled to 100 percent of the output of the Virginia and Singapore fabs and 51 percent of the output from Lehi, Utah fab owned by IM Flash Technologies LLC.
The supply agreement has been extended to 2024 and gives Intel the right to buy "certain emerging memory products" on a cost-plus basis.
Meanwhile Micron and Intel will continue to share the output of IM Flash Technologies LLC and certain research and development costs generally in proportion to their investments in the joint venture, which currently stand at 51 percent Micron and 49 percent with Intel.
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