Micron Technology Inc. (NASDAQ:MU) to transit to mDRAM

Posted by Ryan Mandell June 12, 2013 0 Comment 1578 views


The global player in the semiconductor devices market, Micron Technology Inc. (NASDAQ:MU) had planned to shift its focus to mDRAM owing to surging and ever expanding demand for mobile devices. The company is primarily engaged in the development, manufacturing and sales of semiconductor devices with principal focus on NAND Flash, DRAM and NOR Flash memory. The DRAM segment had been accounting for 40 percent of the valuation of Micron Technology Inc. (NASDAQ:MU).

However, the declining use of personal computers and the increasing demand for tablets and mobile devices in markets across the world had plunged the sales of DRAM memory devices of the company. The DRAM market is also suffering from the mismatch between supply and demand of the product in the market and declining selling prices for the DRAM memory devices.

The traditional demand for the DRAM devices of Micron Technology Inc. (NASDAQ:MU) had been coming from the PC manufacturers and with the recent decline in the PC markets, the revenues from DRAM segment of the company had started to fall. To make up for this shortfall, Micron Technology Inc. (NASDAQ:MU) had shifted its focus to the mobile DRAM devices which could be used for the memory packaging in the mobile devices such as smart phones and tablets.

The mDRAM variants of the original are low power memory devices suitable for mobile applications. Though the revenues of Micron Technology Inc. (NASDAQ:MU) are attributed only to the extent of 10 percent to the sales of mDRAM devices, the proposed acquisition of Elpida Inc. by the company would significantly increase the numbers.

Micron Technology Inc. (NASDAQ:MU) had almost finalized the acquisition of Elpida which currently reports a revenue of $218 million from the sales of mDRAM devices, which is more than double the revenue of $106 million which Micron Technology Inc. (NASDAQ:MU) secures from mDRAM. The shares of the company had recently declined by 1.08 percent to close at $12.81 per share for the last trading session on Tuesday. The shares of Micron Technology Inc. (NASDAQ:MU) had recently surged to the new peak of $13.19 per share for the 52 week high price level.


About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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