Micron Technology and Elpida Memory trustees announced on Wednesday the closing of Micron’s acquisition of 100% of Elpida’s equity, pursuant to a sponsor agreement entered into on July 2, 2012 in connection with Elpida's corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court. Micron also acquires 24% Rexchip shares from Powerchip Semiconductor.
Elpida's assets include a 300mm DRAM fabrication facility located in Hiroshima, Japan; an approximate 65% ownership interest in Rexchip, whose assets include a 300mm DRAM fabrication facility located in Taiwan; and a 100% ownership interest in Akita Elpida Memory, whose assets include an assembly and test facility located in Akita, Japan. Together with the Rexchip shares acquired from Powerchip, Micron will control approximately 89% of Rexchip's outstanding shares and 100% of Rexchip product supply. The manufacturing assets of Elpida and Rexchip together can produce more than 185 thousand 300mm wafers per month, which represents an approximate 45% increase in Micron's current manufacturing capacity.
“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 R&D and manufacturing scale, significant cost and production synergies and a stronger memory product portfolio to provide solutions to our customers,” said Mark Durcan, chief executive officer of Micron.
Using its advanced technologies, Elpida has built a strong presence in Mobile DRAM, targeting mobile phones and tablets. Micron is a leader in delivering enterprise DRAM solutions for networking and servers as well as offering a wide product portfolio in NAND flash memory and NOR. Combining the two complementary product portfolios will further strengthen Micron's position in the memory market and enable it to provide customers with an even more complete set of high-quality solutions.
“This transaction is a strong testament to the value of Elpida's technologies, products and people, and it will result in a combined organization that can best serve customers with broader memory solutions, strength and scale,” said Yukio Sakamoto, chief exec, president and co-trustee of Elpida.
Effective with the closing, Mr. Sakamoto announced his resignation from Elpida. Micron and Elpida announced that Yoshitaka Kinoshita will replace Mr. Sakamoto as the president, representative director and business trustee of Elpida and become the president of Micron Japan.