Micron Technology, Inc.,
today announced that it is expanding its partnership with Nanya Technology Corporation
and signing a definitive agreement to acquire Qimonda AG's 35.6 percent
ownership stake in Inotera Memories, Inc., a leading Taiwanese DRAM memory manufacturer,
for $400 million in cash. To help fund the purchase price, Micron has obtained
$285 million in term loan financing commitments from strategic sources at favorable
In the current Qimonda and Nanya partnership, Inotera operates two state-of-the-art
300 millimeter wafer fabrication facilities producing a total of 120,000 wafers
per month. Under the agreement, Micron will acquire access to half of the total
manufacturing capacity of Inotera, with the other half allocated to Nanya. Micron
will also share its industry-leading Stack DRAM technology with Inotera for
the production of Stack DRAM products for Micron and Nanya.
“This new relationship with Inotera will increase Micron’s competitiveness
by further leveraging our current MeiYa joint venture with Nanya,” said
Steve Appleton, Micron Chairman and CEO. “Micron will gain greater scale
in DRAM, reduce our operating expenses per wafer and have access to a very cost
The transaction will be completed in two stages, with Micron purchasing half
of Qimonda’s stake, or about 18 percent of Inotera, for $200 million in
cash within approximately the next week — subject to certain government
approvals and other customary conditions. The remaining approximate 18 percent
stake in Inotera will be acquired upon receipt of Taiwan Federal Trade Commission
approval and other customary conditions.
Following the acquisition, Qimonda's share of Inotera's capacity will be ramped
down over a period of months. In conjunction with the acquisition, Micron anticipates
entering into a series of agreements with Nanya to restructure the previously
announced MeiYa joint venture, taking into account its new relationship with
Nanya in Inotera. It is anticipated that both parties will cease future resource
commitments to MeiYa and redirect those resources to Inotera.
“Working with Micron on the MeiYa joint venture has been a positive experience
for Nanya, and we look forward to broadening our relationship,” said Dr.
Jih Lien, Nanya President. “Both Nanya and Micron have proven records
of developing cost-effective leading memory solutions, and we expect to build
on this foundation with our Inotera relationship.”