Micron takes over bankrupt Elpida
The American memory manufacturer Micron Technologies would take over the bankrupt Elpida Memory Inc for about 2 billion euros. That Japanese competitor had been in talks with Micron about an acquisition for some time, but the deal is now said to be finalized.
The total acquisition amount, according to the Japanese newspaper Nikkei, is 200 billion yen, about 2 billion euros. The bulk of this, about 1.4 billion euros, would be used to pay off Elpida’s debts. However, Elpida’s total debts amount to more than 4 billion euros, but the remainder would not be repaid. The acquisition must be approved by the Tokyo court on August 21.
Among other things, the acquisition would expand Micron’s production facilities for memory for smartphones with a factory in Hiroshima province. A portion of the 100 billion yen that Micron would like to invest in Elpida’s fabs should go to that facility. The takeover talks gained momentum in May; Micron was then the only candidate to take over Elpida.
With the takeover, the dram market should recover somewhat; with less production capacity, the supply would decrease somewhat, which should lead to a stabilization of prices. The price pressure for memory manufacturers contributed to the demise of Elpida.