“Micron is buying bankrupt Japanese chip maker Elpida for $750 million in cash and $1.75 billion in future installment payments, according to a company statement released Monday,” Antoine Gara reports for TheStreet.
“In a separate move, Micron also said on Monday that it would buy a 24% stake in Taiwanese chip maker Rexchip Electronics for roughly $334 million from Powerchip Technology Corporation, adding to the 65% stake in the company that Elpida owns and putting its share ownership at 89%.,” Gara reports. “By adding Elpida and Rexchip’s manufacturing capabilities Micron will roughly double its capacity to make DRAM memory chips, which are a key component of smartphones and mobile devices, and become a supplier to Apple.”
Gara reports, “In late 2011, Micron had been reported to consider a multi-billion bid for Elpida prior to its bankruptcy; however a deal never emerged. In early February, former Micron CEO and chairman Steve Appleton died in a plane in a plane crash. Later that month, Elpida filed for bankruptcy.”
Read more in the full article here.
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