Micron will become the No. 2 maker of memory chips worldwide, second only to Samsung as it is set to buy Elpida Memory, a big supplier to Apple.
The Boise, Idaho-based chipmaker will purchase bankrupt Elpida for $2.5 billion, instantly doubling its share of the memory chip market to about 24 percent. Market leader Samsung has about a 42 percent share.
Elpida was formed in 1999 when NEC and Hitachi merged their memory chip businesses. But the price volatility of the memory market forced it to file for bankruptcy in February with $5.6 billion of debt, despite having become the world's third-largest maker of memory chips.
The Japanese company has a strong presence in the mobile DRAM market and has been a major supplier of memory to Apple and was a leading DRAM supplier for the third-generation iPad and iPhone 4S.
"We suspect Apple may have influenced Micron's bidding in an effort to avoid disruption to their mobile DRAM supply," Glen Yeung, an analyst at Citigroup, wrote in a research note in May.
Apple - USE TAG
reading•Micron to buy major Apple supplier Elpida, takes on Samsung
Dec 17•T-Mobile launches eSIM for the iPhone XR, XS and XS Plus
Dec 17•How to set up your new Amazon Echo
Dec 17•Is your Apple Watch waterproof? Sort of
Dec 17•Smartwatches will continue to dominate wearables into 2022, predicts IDC