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.