Micron Technology Inc agrees to acquire rest of Inotera Memories Inc
16 Dec 2015
Micron Technology Inc agreed to acquire the rest of Inotera Memories Inc it did not already own for $3.2 billion, excluding cash and debt, in what is seen as the latest consolidation in the global semiconductor market.
According to the Boise, Idaho-based company, the offer was worth NT$30 per Inotera share, the Boise, Idaho-based company. Micron, which now owned 33 per cent of Inotera, said both sides had 60 days to agree on the final details of the deal.
Micron, a maker of chips that provide the short-term memory in computers and servers, buys all of Inotera's DRAM production and expects completion of the deal by middle of next year.
The combined company posted earnings before interest, tax, depreciation and amortisation of about $7 billion in the last 12 months, Micron said in a statement.
China's Tsinghua Unigroup Ltd on Friday announced plans to acquire stakes in Siliconware Precision Industry Co, ChipMOS Technologies Inc and Powertech Technology Inc.
Meanwhile, Micron Technology, Inc announced it had entered into a memorandum of understanding to grant Nanya Technology an option to license Micron 1x and 1y DRAM technologies. This new license agreement is in addition to Micron's existing license agreement for 20 nanometer (nm) technology with Nanya.
''Micron and Nanya have enjoyed a strong relationship over the years, and this agreement extends our strategic relationship while also providing further value to both companies and their shareholders,'' said Micron CEO Mark Durcan.
Under the license agreements contemplated by the memorandum, in each case when Nanya exercises its option to license the 1x or 1y technology and subject to the satisfaction of certain conditions, Micron will receive an equity stake in Nanya and also royalties based on revenues from products implementing the technology-subject to an agreed cap. The new licences are limited to a specific facility footprint and subject to an overall quarterly cap on production. These are not transferrable and terminate upon a change of control of Nanya. The new licences do not impact the existing 20nm DRAM technology agreement between Micron and Nanya.
''Nanya and Micron have a strong and successful history of collaboration, and we expect to build on this foundation with our new agreement,'' said Nanya president Dr Pei-Ing Lee.
The memorandum of understanding provides an additional 60-day period for Micron and Nanya to enter into definitive agreements with further specified mechanics and details of the licenses. The memorandum is subject to termination if these additional agreements are not reached within that timeframe or if certain other conditions are not met.
