Hello docpaul, no, I have not seen any information about whether "memory" in the definition of this deal includes flash. However, I know that Hynix flash strategy has long been to make flash chips based on the same processes as DRAM (piggybacking on DRAM process development). And as Micron does some flash, too, it would seem more likely than not to me that Micron would take over the flash part also. Also, Hynix flash unit is led by Americans out of San Jose, which may make it yet more likely.
That's as much as I can say. Personally, I think we're still lacking too many details about the distribution of assets and liabilities between Hynix and Micron after the deal to arrive at a good judgment about it. At this point, it sure looks like a good deal for Micron. But it seems to me that unless Micron puts creditors in a significantly better position than they were without a deal they won't bite. I would say that unless Micron takes over some fairly large portion of Hynix debt that won't be the case. If Micron is asking creditors to write off most of their debt and even extend new loans, then where is the difference for them to just keeping Hynix afloat and try some other restructuring? Yes, there may be some objective differences, such as Micron will be able to make the thing more profitable with its superior technology and management or Hynix market share will be valued more highly when in Micron stock. But emotionally, it still tastes like defeat and rip-off to the Koreans. I think Micron has to do some more face-saving for them first. After all, these guys will be judged by Korea on whether they did "the right thing" or not. You know, you don't want your family to live in a country where everyone thinks (rightly or not doesn't matter) that you're the guy who sold one of the country's biggest assets in a bad deal to foreigners because you were outsmarted in the negotiations.
ohkami |
