May 11, 2012 - GLOBE NEWSWIRE -- Memory chip maker Micron Technology Inc. (Nasdaq:MU) confirmed that it is engaged in discussions to take over the assets of bankrupt DRAM maker Elpida Memory Inc.
The Tokyo District Court has approved negotiations between Elpida trustees and Micron, wherein Micron would become Elpida's sponsor, acquiring the chipmakers’ entire business, in accordance with the corporate reorganization proceedings. Micron was considered the most likely winner for the sponsorship, among other competitors such as Hynix, and Toshiba, and private equity firms.
Semiconductor industry analysts at Barclays Capital approve of the selection, saying that Micron would gain fabs at well below the cost of constructing an equivalent amount of capacity.
Elpida’s bankruptcy proceedings began in February 2012. In 2011, Elpida had about 11% of the DRAM market share, tied with Micron. If Micron maintains all of Elpida’s fab lines making DRAM memory chips, the company could jump over Hynix to the #2 supplier spot, behind Samsung.
It has been a year of drastic changes for Micron, beginning with the tragic death of long-time Micron CEO and chairman Steve Appleton in early February. Mark Durcan, who served as COO and CTO at Micron, replaced Appleton.
Micron Technology Inc. manufactures and markets a range of DRAM, NAND and NOR flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems. Micron's common stock is traded on the NASDAQ under the MU symbol. To learn more, visit www.micron.com.