Intel, Micron launch flash memory company
Tuesday November 22, 10:35 am ET
Intel Corp. and Micron Technology Inc. are forming a company to manufacture flash memory chips, the two founders said late Monday.
Santa Clara, Calif.-based Intel (NASDAQ: INTC - News) and Boise, Idaho-based Micron (NYSE: MU - News) said they will contribute $1.2 billion each to form IM Flash Technologies LLC.
Micron will own a 51 percent stake in the company, and Intel will own 49 percent.
In 2003, Sunnyvale, Calif.-based Advanced Micro Devices Inc. (NYSE: AMD - News) and Japan's Fujitsu Ltd. formed a joint venture, Spansion LLC, to make flash memory. Sunnyvale, Calif.-based Spansion, which is preparing to go public as Spansion Inc., operates a manufacturing plant in Austin that employs about 1,000 people.
Flash memory is used in devices such as mobile phones, PDAs and MP3 players to store data.
Intel and Micron said they have signed separate long-term agreements to supply Cupertino, Calif.-based Apple Computer Inc. (NASDAQ: AAPL - News) with a significant portion of each of their share of IM Flash Technologies' NAND flash memory chips. Under the deals, Apple will prepay $250 million each to Intel and Micron.
Spansion makes NOR flash memory, which has been losing market share to NAND flash memory.
IM Flash Technologies will be headed by Intel's Dave Baglee and Micron's Rod Morgan.
The new company is expected to start making chips at plants in Idaho, Utah and Virginia in early 2006.
Published November 22, 2005 by the Austin Business Journal
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