Micron to Pay Intel $1.3B to $1.5B for IM Flash Stake
by Anton Shilov on May 8, 2019 2:00 PM EST
Earlier this year, Micron announced their intention to buy out Intel's stake of their memory technology joint venture, IM Flash Technologies. Now, as the process gets underway, Micron is disclosing more concrete details about the transaction. According to the company's latest filing, Micron will pay Intel approximately $1.3 billion to $1.5 billion for their stake and associated debt, with the expectation of closing the deal by the end of October.
Under the terms of the joint venture deal between Intel and Micron signed in 2005, Micron controls 51% of firm and has a right to buy the remaining share under certain conditions. Intel previously sold Micron its stakes in IM Flash's fabs in Singapore and Virginia back in 2012, which left the IM Flash joint venture itself with only a single fab in Lehi, Utah. Nowadays the production facility is used exclusively to make 3D XPoint memory, which in turn is currently only used by Intel. Micron itself plans to use the fab to make 2nd Generation 3D XPoint memory that it will use for products set to be launched by late calendar 2019. Eventually, the facility will be used to manufacture post-3D XPoint memory.
Financially, most of the $1.3 billion plus price tag for Intel's stake is not for the business itself, but is for the IMFT member debt owed to Intel ($1 billion as of February 28, 2019), which means the business is only being valued at around $300 million to $500 million. Meanwhile, along with acquiring complete ownership of IMFT once the deal closes, Micron reports that the company will also recognize a financial gain of about $100 million.
The money that Intel will receive from Micron will enable it to invest in upgrading production facilities and/or building up capacity to make 3D XPoint and similar classes of memory in the future. Meanwhile, Intel will retain right to buy 3D XPoint from Micron until at least mid-2020.
Related Reading:
- Micron Exercises Option to Buyout Intel's Share of IMFT
- What Next for 3D XPoint? Micron to Buy Intel's Share in 3D XPoint Fab
- Intel and Micron To Dissolve 3D XPoint Partnership After 2019
- Intel And Micron To Discontinue Flash Memory Partnership
- Micron Starts Construction of Its Third NAND Fab in Singapore
- Micron Discontinues Lexar Business, Plans to Focus on Higher-Margin Products
Source: Micron/SEC (via Tom’s Hardware)
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sgeocla - Wednesday, May 8, 2019 - link
Sounds like Intel is preparing for some harsh times. Selling & slashing projects left and right: 5G modems, Xeon Phi, ML sticks, IoT, 3D Xpoint ...HStewart - Wednesday, May 8, 2019 - link
Could be Intel selling off old technology preparing for new technology - as part of this Toms Hardware reports that a former Intel employee try to take some of 3D X Point technology to Micron.ML sticks are old version for development - replace by new in house better.
Xeon Phi is older version 200 version and will be replace by Xe stuff.
Some times it best for company to clear out the junk for new technology.
Intel has made the largest investment in new Fabs - so Micron fab must be out of date - too bad Micron - you don't get 3D X Point from former employee.
sgeocla - Wednesday, May 8, 2019 - link
You forgot the revolution of future tech: 5G and IoT. The rest are just peanuts compared to the R&D spent on those 2 projects.Must have been old tech too.
HStewart - Wednesday, May 8, 2019 - link
I believe intel still has 5G in areas just not in some areasJust because one product is cancel in IoT does not mean Intel is not looking forward
The technology in Forores is something that defiantly part of the past - have 3d layer of chips of different Technogym.
I am an optimize and not pessimist like a lot of gamers here especially when it comes to Intel products.
HStewart - Wednesday, May 8, 2019 - link
For the pessimist, here is the latest - Intel is going forward not backwardshttps://www.anandtech.com/show/14311/intel-process...
Mobile is this year and Pessimist report server / desktop not until 2021/2022 - which also 2021 is Intel's 7 nm - I don't believe nm between different foundries mean much Intel 10nm is suppose more dense than others 7nm. and it not dead as some think.
Wilco1 - Wednesday, May 8, 2019 - link
Intel 10nm is less dense than TSMC 7nm when it finally goes into production. However TSMC has already started 5nm production which is twice as dense... So Intel is now a full process generation behind TSMC. If desktops stay on 14nm then AMD will have 2 process generations advantage next year!ilt24 - Wednesday, May 8, 2019 - link
@HStewart ... "I believe intel still has 5G in areas just not in some areas"Yes while Intel has ended it 5G modem effort, they are still working with the network equipment companies and cell service providers on 5G network infrastructure hardware.
HStewart - Wednesday, May 8, 2019 - link
Well obvious Intel does not think so - they have a showing in COMPUTEX 2019https://newsroom.intel.com/news-releases/intel-com...
On both IoT and 5G.
There is a lot of misinformation about Intel floating in forums - best to get information directly from Intel.
sgeocla - Thursday, May 9, 2019 - link
Best to get information directly from Intel.> Intel: The Specre and Meldown vulnerabilities will not delete or alter your data.
> Reality: They allow stealing your data and identity and coupled with Rowhammer and over vulns they even allow ALTERING the data.
> Intel: It's not just us affected by security vulnerabilities, others like AMD and ARM are too.
> Reality: They are dragging competitors through the mud. The number of Intel vulnerabilities is 5 to 1 vs AMD or ARM.
> Intel: We have shipped 10nm in 2018.
> Reality: Intel has pushed one OEM to build one 10nm laptop in a with 2 cores and no graphics that consumes more power than 14nm version and is release with no publicity in a market nobody knows about.
> Intel: 5G modems are going great. We skipped our first release because we have a newer better modem version.
> Reality: Apple steals Qualcomm modem secrets to give to Intel to make them work. Intel cannot even make them work with stolen trade secrets. Apple is force to deal with Qualcomm because the Intel 5G modems are just photoshopped bluffs.
Haawser - Thursday, May 9, 2019 - link
Exactly. At this point, everything Intel marketing/PR puts out should be treated as a complete crock of crap, unless physical proof can be provided that it isn't.