English | دری

Micron Technology Buys Japanese Rival Elpida

in International Business

Micron Technology Buys Japanese Rival Elpida

Micron agrees a USD 2.5 billion deal to buy Japanese chipmaker Elpida, which will consequently make Micron become the world’s second-largest maker of dynamic random access memory (DRAM) chips.

Elpida has been beset with difficulties for being unable to repay debts of 448 billion yen. The company had filed for bankruptcy protection in February.

Micron has also been hit by the lower demand and falling prices of DRAM chips, facing a loss of USD 224 million in the three months to 01 March.

The deal will help strengthen the combined companies’ market position “through increased research and development and manufacturing scale” and “improved access to core memory market segments,” according to Mark Durcan CEO of Micron Technology.

Micron said that output from Elpida and Rexchip factories could increase its current manufacturing capacity by almost 50%.

“We’ve always had deep requirements for additional capacity and this puts us in great shape to respond to that,” said Mark Adams, president of Micron.

Elpida will also allow some flexibility to Micron in terms of expanding its future capacity by diversifying its product range.


Tags assigned to this article:
Micron-Elpida deal

Related Articles

Manchester United may move share sale to US reports say

Manchester United football club is considering moving its planned stock market flotation to the US from Singapore, reports have said.

India’s economy grows at 5.5%, more than expected

India’s economy grew faster than expected in the April to June period. Most analysts had forecast a rate of 5.2%.

Amazon to buy Washington Post for USD 250mn

The founder and CEO of Amazon.com, Jeff Bezos, has announced to buy America’s largest and renowned media publications, The Washington Post, for

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.