Intel and Micron join forces for flash
Intel and Micron join forces for flash
Nov 23, 2005: Intel has teamed up with Micron Technology to make a segway into the NAND flash memory business. Christmas seems to have come early for the two heavyweights and their new baby company too with a side agreement with Apple worth US$250 million each upfront.
The new company formed by Intel and Micron, called IM Flash Technologies, will combine Micron’s expertise developing NAND flash memory with Intel’s multi-level cell technology and long time experience in the flash memory game.
The new venture will produce memory for consumer electronic devices, removable storage and handheld communication equipment.
An important part of the agreement will see Intel and Micron separately supply Apple with a significant share of IM Flash Technologies’ total chip output in exchange for it prepaying US$250 million to each.
“The creation of this new company … enables us to rapidly enter a fast-growing portion of the flash market segment,” said Paul Otellini, Intel president and CEO. “We are looking forward to working with Micron, and are extremely pleased to have Apple broaden its relationship with us.”
Both companies have agreed to initially contribute approximately US$1.2 billion each in cash, notes and assets to IM Flash Technologies. A further US$1.4 billion will be fed into the venture over the next three years. Micron will take on 51% ownership and Intel 49%.
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