Micron completes $2 billion buy of chip supplier to Apple
Idaho-based Micron Technology immediately becomes one of the largest suppliers of mobile memory for popular products like the iPad and iPhone.
Micron Technology has completed the acquisition of Japan-based Elpida, instantly making it one of the largest suppliers of mobile memory chips for devices like the iPad, iPhone, and Nexus 7.
Micron and Elpida trustees have announced the closing of the U.S. company's acquisition of 100 percent of Elpida's equity, the two companies announced Wednesday. The deal, estimated at $2 billion, had been in the works since July 2012.
"Using its advanced technologies, Elpida has built a strong presence in Mobile DRAM, targeting mobile phones and tablets," Micron said in a statement.
Idaho-based Micron is already one of the largest memory manufacturers in the world. It also markets memory and solid-state drives under the Lexar and Crucial brands.
Elpida's assets include a DRAM fabrication facility in Hiroshima, Japan and a 65 percent ownership interest in Rexchip, whose assets include a DRAM fabrication facility in Taiwan, Micron said. Elpida also has a 100 percent ownership interest in Akita Elpida Memory, whose assets include an assembly and test facility located in Akita, Japan. From the statement:
Together with the Rexchip shares acquired from Powerchip, Micron will control approximately 89 percent of Rexchip's outstanding shares and 100 percent of Rexchip product supply. The manufacturing assets of Elpida and Rexchip together can produce more than 185,000 300mm wafers per month, which represents an approximate 45 percent increase in Micron's current manufacturing capacity.
Yukio Sakamoto, CEO of Elpida, announced his resignation, effective with today's closing of the deal.