Interesting post from Brian K. on the AMAT thread. On DRAM mergers, but the paragraph of special interest to Sandisk is near the bottom of the article: Samsung Electronics Co. Ltd. is also said to be interested in Toshiba's Direct Rambus DRAM and NAND-flash memory operations. It isn't clear if Toshiba wants to divest its successful NAND-flash business, and if so,whether it is part of the package under discussion with Infineon.
DRAM mergers, another sign of a nearing bottom?
Infineon, Toshiba move closer to DRAM merger deal
By Jack Robertson
EBN
(10/16/01 10:14 a.m. EST)
Infineon Technologies AG and Toshiba Corp. are close to reaching an agreement to merge their DRAM
operations, sources close to the German chip maker said Tuesday.
Infineon confirmed a month ago that the two companies were discussing such a combine, after Toshiba
disclosed that it planned to put its money-losing DRAM business on the block. Little was revealed
beyond that until this week, when sources said details regarding how such a DRAM union would be
constructed have begun to emerge.
The source said Infineon has directed its humnan resources department to draft potential organizational
arrangements if the merger goes through, adding that the talks are in the home stretch.
An Infineon spokesman in Munich would only say that discussions with Toshiba were continuing and
that no final deal had been struck. A Toshiba spokesman in the United States said he could not comment
on the issue.
Industry observers said that under the most likely merger scenario, Infineon and Toshiba would spin off
their combined DRAM operations in a similar fashion to Elpida Memory Inc., which was created by the
union of the DRAM businesses of Hitachi Ltd. and NEC corp.
Infineon president Ulrich Schmacher introduced the idea of a DRAM spin-off as long as two years ago,
though that was at a time when many companies in the electronics industry were spinning off chip
divisions in an effort to raise funds through initial public offerings.
Samsung Electronics Co. Ltd. is also said to be interested in Toshiba's Direct Rambus DRAM and
NAND-flash memory operations. It isn't clear if Toshiba wants to divest its successful NAND-flash
business, and if so,whether it is part of the package under discussion with Infineon.
The embattled DRAM industry is facing continued consolidation as suppliers incur major losses on
record-low memory chip prices. In addition to the on-going Infineon-Toshiba talks, the spotlight is on
Hynix Semiconductor Co., which is in the midst of protracted negotiations with creditors to craft a bailout
plan. |
