Micron inks historic deal with Japanese company


Posted on July 2, 2012 at 7:15 AM
Updated Monday, Jul 2 at 11:00 PM

TOKYO -- Officials from Boise-based Micron Technologies say a historic merger with two east-Asian memory companies will increase Micron's total manufacturing capacity by 50 percent.

On Monday, Micron officially announced its widely-anticipated $2.5 billion purchase of the Japanese chip company Elpida Memory, Inc. Micron announced plans of the merger in March. Officials have been courting Elpida since 2009.

In a related move, Micron officials also announced the company's $334 million purchase of stocks in Taiwanese chip maker Rexchip Electronics Corporation. Officials say that purchase represents about 24 percent of Rexchip's assets.

According to Micron, the combined assets of Elpida and Rexchip are expected to produce more than 200,000 wafers per month, which will represent an approximate 50 percent increase in Micron's current manufacturing capacity.

News of the merger sent Micron's stocks surging in pre-market trading on Monday. Analysts say Micron's stocks were already up 15 percent last week in anticipation of the move. Monday's announcement sent the pre-market price up another 6 percent.

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