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Micron lands large Intel investment

The memory-chip maker receives a $450 million investment from the semiconductor giant in a deal designed to bring Micron's development plans in closer alignment with Intel technology.

Memory-chip maker Micron Technology has received a $450 million investment from chip giant Intel, Micron said Wednesday.

The deal is designed to bring Micron's development plans into closer alignment with Intel technology, Intel spokesman Chuck Mulloy said. At the same time, Mulloy said, the agreement sets the stage for Intel to make future purchases of Micron's MDDR2 memory chips and it supports Micron's development of 300mm wafer processing.

Under the deal, Intel paid $450 million in cash for roughly 34 million shares of Micron, a 5.3 percent stake.

The investment is the second Intel has made in Micron. In 1998, Intel invested $500 million, but it has sold that equity stake over time, Mulloy said. He noted that Intel will sells its investment stakes for a variety of reasons, ranging from strategic issues to financial concerns.

The Micron investment is Intel's latest in a memory-chip maker. Earlier this year, Intel invested $123 million in Elpida Memory over two funding rounds, Mulloy said.