MEMORY MAKER Micron has completed its purchase of bankrupt Japanese memory giant Elpida and also sealed the deal on a further 24 percent stake in Rexchip.
Micron's buyout of Elpida has been a soap opera that at one time seemed like it wouldn't end, with shareholders bickering over whether the US memory maker was offering enough cash for Japan's last major DRAM maker. However finally Micron has announced that the deal to buy Elpida has been done, making Micron a major player in the worldwide DRAM market.
Micron said the purchase of Elpida, which supplies DRAM to Apple among others, includes a 300mm fab plant in Japan. The firm also said that the 24 percent stake in Rexchip means that it now owns 65 percent of the firm, which has another 300mm fabrication plant in Japan.
Micron hopes that by buying Elpida and controlling a larger stake in Rexchip it will be able to compete with industry giants Samsung and SK Hynix through economies of scale. The firm said that the manufacturing capabilities of Micron and Rexchip combined total 185,000 300mm wafers per month, which it said is a 45 percent increase over what the firm presently can manufacture.
Micron CEO Mark Durcan said, "We are pleased to bring together Elpida with Micron to form the industry's leading pure-play memory company. This combination will result in enhanced research and development and manufacturing scale, significant cost and production synergies and a stronger memory product portfolio to provide solutions to our customers."
As Micron closed the deal to buy Elpida, the Japanese firm's CEO Yukio Sakamoto stepped down and Micron appointed Yoshitaka Kinoshita as president of Micron Japan and president, representative director and business trustee of Elpida. µ