When Elpida filed for bankruptcy this past February, the question wasn’t about if the company would be acquired, but by who. After all, when a top 3 DRAM vendor is in trouble, the other 2 aren’t going to sit by idly. That’s been proven today, as Micron announced that it will be acquiring the company for $2.5 billion USD. Calling it a “sponsorship”, Elpida as a company will remain, as will its current workforce.
As a result of this acquisition, Micron also soaks up Elpida’s shares in Taiwan’s Rexchip. Combined with its already existing shares, that puts Micron’s total share ownership of Rexchip at 89%. In addition, with combined access to both Elpida’s and Rexchip’s 300mm fabs, which can push out a combined 200,000 wafers per month, Micron has increased its total manufacturing capacity by 50%.
Micron’s CEO Mark Durcan has stated, “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.“
The transaction is pending usual legal analysis, but is expected to close sometime in the first half of 2013.