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Micron and Intel to Flush USD 3.8 Bln into Flash Technology

Intel and Micron have entered a deal where both have agreed to contribute over USD 1.2B each to create a company called IM Flash Technologies LLC. In the deal, Micron also agreed to sell its NAND flash and chip division along with associated intellectual properties to Intel for USD 270 million. According to the deal, Micron will hold 51% control over the joint venture with Intel on the balance. The new company will develop and produce flash memory technologies based on designs by Intel. The two companies said that each have agreed to also invest a combined total of USD 1.4B over the next three years. With consumer electronics sky rocketing in sales and mainstream acceptance, flash memory continues to be a strong cash cow for many companies.

So far Intel has paid over USD 1.96B in cash to the project, which will be located at Micron's own production and development facilities in Boise, Idaho, Manassas, Va. and Lehi, Utah.


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