It is much more important to know what sort of patient has a disease than what sort of disease a patient has - Sir William Osler
MEMORY MAKER Micron will buy 24 per cent of Powerchip's stake in Rexchip, giving it 89 per cent ownership of the firm.
Micron formally announced that it has entered into an agreement to become Elpida's 'sponsor' after shelling out $2.5bn to buy the company. As part of Micron's purchase of Elpida, it will receive a 65 per cent stake in Rexchip, and Micron has decided to back that up that by buying Powerchip's 24 per cent stake in Rexchip for $334m.
Rexchip has a 300mm DRAM fab in Taiwan and an assembly and test facility in Japan. According to Micron, the combined wafer production capacity of Elpida and Rexchip is more than 200,000 300mm wafers per month, which increases its overall wafer production capacity by 50 per cent.
Mark Durcan, CEO of Micron said all the right things, talking up increasing wafer capacity that will benefit Micron and Elpida's customers. Yukio Sakamoto, co-trustee of Elpida said, "Micron's sponsorship of Elpida will enable stable payment of creditor claims and help to streamline approval of the reorganisation plan by the creditors and the Tokyo District Court. Joining with Micron also delivers a clear advantage for Elpida's customers, suppliers and employees."
With Micron increasing its wafer production capabilities, it can finally compete with Samsung and SK Hynix. The three firms will own most of the DRAM industry capacity and that could lead to rising prices, as they will be able to tightly control memory supplies. µ
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