Intel, ST Micro create new memory firm

ST MICRO, Intel and Francisco Partners will create an independent semiconductor company aiming to supply flash for phones, MP3s, computer and other high tech.

Essentially, ST Micro will sell its flash memory assets while Intel will sell its NOR business. The new company, which hasn't a name yet, will include a 45.1 per cent share, while ST will get a 48.6 per cent share.

PE firm Francisco will invest $150 million in return for 6.3 per cent ownership. The firm will take out a $1.3 billion loan, with its HQ in Switzerland.

Mark Osborne, editor of Fabtech, has been predicting this move for quite a while now. µ