Micron Set to Acquire Elpida for $750 Million Cash, $2.5 Billion Total

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News Posted: Mon, Jul 2 2012 11:15 AM
Micron Technology, founded in 1978 in Boise, Idaho and one of the state's largest employers, announced it has signed a definitive agreement to acquire struggling Elpida Memory in a deal worth $2.5 billion. Under terms of the agreement, Micron will acquire a 100 percent stake in Elpida in exchange for a lump sum cash payment of 60 billion Yen (about $750 million), followed by 140 billion Yen (around $1.75 billion) in future annual installment payments through 2019 for foundry services provided by Elpida.

"We are creating the industry-leading pure-play memory company," said Micron CEO Mark Durcan. "Today's transactions will help strengthen the combined companies' market position in the memory industry through increased research and development and manufacturing scale; improved access to core memory market segments; and additional wafer capacity to balance among DRAM, NAND and NOR memory solutions for the ultimate benefit of Micron and Elpida customers."


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Among Elpida's assets is a 300mm DRAM fabrication plant in Hiroshima, Japan. Elpida also owns a 65 percent stake in Rexchip, which itself owns a 300mm DRAM fab in Taiwan.

Related to the acquisition, Micron also agreed to purchase from Powerchip Technology Corporation its 24 percent stake in Rexchip for around $334 million. Combined with the transfer of Elpida's share, Micron gains control of around 89 percent of Rexchip's outstanding shares.
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realneil replied on Mon, Jul 2 2012 10:36 PM

Micron has built a reputation for quality over a long time. Just like the cornerstone of a building, they are a major force in the industry. This move helps them to stay relevant in an atmosphere of extreme competition.

Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.

(Mark Twain)

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