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Micron Technology, a leading producer of dynamic random access memory (DRAM), is projected to gain control over Inotera Memories, a joint venture between Micron and Nanya Technology Corp., as well as Nanya. The move will significantly boost Micron’s market share and will be another evidence of ongoing trend of consolidation of DRAM industry.

The merger discussion between Micron, Inotera and Nanya are projected to be finalized shortly and the three companies will then present bailout plan to Taiwan Government, which promised to support local DRAM makers provided that they merge with each other or their partners abroad, said Charles Kao, president of Inotera Memories, in an interview with DigiTimes web-site.

Micron and Nanya's co-development model satisfies the government's desired for sustainability, Mr. Kao indicated. This substantially increases the bailout plan to receive positive resolution from the Government of Taiwan.

Earlier Inotera reduced headcount by 400, or about 4.5%, and cut capacity by 30% in order to reduce supplies of DRAM and boost its pricing as well as to cut its costs.

No actual details concerning the merge between Micron, Inotera and Nanya are known at present.

Tags: Business, DRAM, Micron, Inotera, Nanya

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Comments currently: 1
Discussion started: 01/21/09 07:25:48 PM
Latest comment: 01/21/09 07:25:48 PM

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In the medium-long term this will increase the cost of product to consumers and its also anti competitive
0 0 [Posted by: alpha0ne  | Date: 01/21/09 07:25:48 PM]
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