Sunday, May 26, 2019

Micron will pay Intel approximately $1.3 billion to $1.5 billion for their IM Flash share

Earlier this year, Micron announced their intention to buy out Intel's stake of their memory technology joint venture, IM Flash Technologies. Now, as the process gets underway, Micron is disclosing more concrete details about the transaction. According to the company's latest filing, Micron will pay Intel approximately $1.3 billion to $1.5 billion for their stake and associated debt, with the expectation of closing the deal by the end of October. Under the joint venture deal between Intel and Micron signed in 2005, Micron controls 51% of the firm and has a right to buy the remaining share under certain conditions. 
IM Flash Technologies, LLC is the semiconductor company founded in January 2006, by Intel Corporation and Micron Technology, Inc. IM Flash produces 3D XPoint used in data centers and high-end computers. It has a 300mm wafer fab in Lehi, UT, United States. (Wikipedia, Google maps)
Intel previously sold Micron its stakes in IM Flash's fabs in Singapore and Virginia back in 2012, which left the IM Flash joint venture itself with only a single fab in Lehi, Utah. Nowadays the production facility is used exclusively to make 3D XPoint memory, which in turn is currently only used by Intel. Micron itself plans to use the fab to make 2nd Generation 3D XPoint memory that it will use for products set to be launched by late calendar 2019. Eventually, the facility will be used to manufacture post-3D XPoint memory. 
IM Flash Utah Fab from above (Google Maps)
Source: AnandTech LINK

By AbhishekkumarThakur, Jonas Sundqvist

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