Intel and Micron get together to make Flash
Intel and Micron are getting married. Sort of, anyway, but they will still be seeing other people. In the wake of Apple’s announcement that they will be spending $1.25 billion to secure Flash memory supplies until 2010, the two companies have formed a new company called IM Flash Technologies to make NAND Flash memory chips. Once shareholders on both sides approve the new company, it will be 51% owned by Micron and 49% by Intel.
The Intel-Micron business will exclusively manufacture Flash for the two parent companies. Both companies have said that a significant share of each company’s allocation of IM production will go to Apple.
To fund the business, each company will put up $1.2 billion in cash notes and assets for IM. Each will contribute an additional $1.4 billion over three years.
Production will begin in Boise, Idaho, the home of Micron. Other production facilities will be added.
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