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Micron Emerges as Front-Runner To Buy Out Elpida
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Old 9th May 2012, 09:25   #1
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Default Micron Emerges as Front-Runner To Buy Out Elpida

Following a rapid turn of events, Micron Technology has emerged as a front-runner in the race to buy out ailing Japanese DRAM major Elpida. Elpida revealed Micron as the winner of the second round of bidding for the right to negotiate exclusively to buy it. DRAMeXchange predicts that Micron may offer up to 300 billion JPY (US $3.75 billion) for the deal, and the Micron+Elpida combine that emerges out of the deal, with its DRAM capacity, could bring about a revolutionary change in the industry.

The Elpida buyout, according to market analysts at TrendForce, will give Micron the capability to compete with Korean DRAM heavyweights SK Hynix and Samsung Electronics, in high-volume DRAM manufacturing. Elpida has been known for investments in DRAM R&D, and isn't behind the two Korean companies in terms of volume manufacturing. Its 30 nm-class DRAM yield-rate is nearly mature, while the next-generation 25 nm process is in testing phase.
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