Micron Technology to buy Intel’s stake in NAND flash JV for $600 million

Micron Technology, the largest chip maker in the US, is buying its joint venture partner Intel Corp's stake in two IM Flash Technologies factories for about $600 million. After the stake sale, it will sell chips used to store data in mobile phones and tablets to Intel.

IM Flash Technologies was formed in January 2006 by Micron and Intel to manufacture NAND flash memory for use in consumer electronics, removable storage, and handheld communication devices.

The two companies invested $1.2 billion each in the joint venture, IM Flash Technologies.

IM Flash combines Micron's process and product technology with Intel's multi-level cell technology and innovation in flash memory to successfully compete in the NAND flash memory business, an increasingly important and fast growing market segment.

Micron will pay $300 million in cash for Intel's stake in two facilities, one in Singapore and the other in Virginia, while the remaining amount will be deposited with Micron and may be refunded or accounted for Intel's future purchases of NAND Flash memory chips.

Intel buys flash memory chips from Micron worth around $1 billion annually and the deal may provide Micron better margins on at least half of these sales.