Micron scoops up Elpida Memory, 50-percent production boost for $2.5 billion

Source: http://www.engadget.com/2012/07/02/micron-buys-elpida-memory/

There's no question that Micron has shifted its focus away from PCs in favor of producing components, shipping everything from SSDs to CMOS sensors in recent years, but the semiconductor manufacturer just took a $2.5 billion step even closer to bridging its gap between other companies in the same market, including Samsung, the chip producer's top competitor. Under the deal, Elpida Memory, which is headquartered in Tokyo, will fall within the Idaho-based conglomerate's growing umbrella, netting Micron a 50-percent boost in production capability. That increase did come at great expense, however -- the transaction included $750 million in cash and $1.75 billion in future installments (1,750 easy payments of one million dollars?), which are set to continue through 2019. The acquisition was also paired with a 24-percent stake in Rexchip Electronics for an additional $334 million, which will complement Elpida's investment, yielding a total 89-percent stake for Micron. While the amount does seem quite significant, investors appear to be on board, with Micron's stock ($MU) currently up more than 4 percent since this morning. Both deals will reportedly close within the next year.

Micron scoops up Elpida Memory, 50-percent production boost for $2.5 billion originally appeared on Engadget on Mon, 02 Jul 2012 19:39:00 EDT. Please see our terms for use of feeds.

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