Memory-chip maker Micron Technology to buy Elpida MemoryJuly 2, 2012 - 18:38 AMT PanARMENIAN.Net - Memory-chip maker Micron Technology Inc. has agreed to buy Elpida Memory Inc. for approximately $750 million in cash in a deal that would boost its wafer manufacturing capacity by about 50 percent, the Associated Press reported. Elpida specializes in dynamic random access memory chips used in mobile phones and computers. It has been developing a plan of reorganization since filing for the largest manufacturing bankruptcy ever in Japan earlier this year. Elpida wanted to reorganize after years of sliding chip prices amid a glut of supply, punishing competition from South Korea's Samsung Electronics Co. and weaker sales due to last year's flooding in Thailand that disrupted production. Micron and Elpida said Monday, July 2, that the total value of their deal is about $2.5 billion including about $1.75 billion in future annual installment payments that Micron would make through 2019. Elpida's reorganization plan is expected to be submitted in August to the Tokyo District Court for approval. Last month Micron Technology said that it was in talks to purchase Elpida. Micron Technology said at that time that the Tokyo District Court had allowed Elpida's trustees to negotiate an agreement with Micron to become Elpida's sponsor and acquire its entire business in accordance with corporate reorganization proceedings. The Micron deal requires approval from Elpida's creditors, the Tokyo District Court and antitrust approvals. Boise, Idaho-based Micron Technology also said Monday that it is buying Powerchip Technology Corp.'s 24 percent stake in Rexchip Electronics Corp. for approximately $334 million. Elpida has about a 65 percent stake in Rexchip. Combined, this will give Micron Technology an 89 percent stake in Rexchip. The deals are expected to close during the first half of 2013. Micron's transaction with Powerchip will take place once the Elpida acquisition is complete. Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Scholz hopes Armenia-Azerbaijan peace treaty will be signed this year German Chancellor Olaf Scholz hopes that a peace treaty between Armenia and Azerbaijan will be signed this year. Armenia, Russia discuss life extension of Metsamor nuclear plant Issues regarding the extension of life of the 2nd power unit of the Armenian Nuclear Power Plant were discussed in Yerevan. Armenians stage more campaigns against territorial concessions to Azerbaijan Protesters blocked more roads across Armenia on Friday, April 26 in continuing attempts to scuttle territorial concessions to Azerbaijan. Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. |