Micron Technology, Inc (NASDAQ:MU) moves on with Elpida Memory buyout
On Wednesday, Micron Technology, Inc (NASDAQ:MU) closed the Elpida Memory acquisition. The latter is a Tokyo-based company. The Idaho-headquartered MU has an R&D campus in Folsom. Last year, Micron entered into a 100% acquisition of Elpida’s assets. This took place via corporate-reorganization proceedings that were conducted under the Tokyo District Court’s jurisdiction.
Massive capacity addition
Elipda Memory’s assets include one 300mm DRAM fabrication-plant in Hiroshima, Japan and an assembly & testing lab called Akita Elpida Memory, in Akita Japan. It also has an ownership interest in a company named Rexchip. This has a 300 millimeter DRAM plant in Taiwan.
In combination, Elpida and Rexchip are able to produce over 185,000, 300mm wafers/ month. This adds 45% to MU’s current capacity. Mark Durcan, the MU CEO said in a news release that this new association will lead to enhancement in R&D as well as an increase in manufacturing scale.
In Thursday’s trading session, Micron Technology, Inc (NASDAQ:MU) rose by 2.53%. It opened at a price of $13.38, rose to an intraday high of $13.63 before closing at $13.57. In the last trading session, around 3M shares exchanged hands. The average volume of shares traded over a 30-day period was 48.40M. The company has a market cap of 14.05B.
MU is involved in the manufacture and marketing of semiconductor devices. It manufactures NAND, DRAM, Flash and NOR Flash Memory. It also has other packaging solutions, memory technologies and semiconductor systems. All these systems are used in consumer, computing, automotive, industrial, mobile and embedded products.
In addition to this, the company is involved in the manufacture of semiconductor components that are used in CMOS image sensors as well as various other semiconductor products. MU operates in 4 different segments- DRAM Solutions Group (DSG), NAND Solutions Group (NSG), Embedded Solutions Group (ESG) and Wireless Solutions Group (WSG). The company has manufacturing units in the U.S, Italy, China, Israel, Singapore and Puerto Rico.