Micron’s 9 October announcement that they would be scaling back Flash production and jobs seems pretty bizarre now that they’re going to throw $400 million at Inotera, the joint venture between Nanya and Qimonda.
Under the terms of the agreement, Micron’s stake in the company will grow to 36% of Inotera’s total trading volume. As governmental agencies and regulatory firms put the approval stamp on the deal, Qimonda will slowly ramp down its production and exit stage left. Under the Micron/Nanya joint ownership, Micron will gain access to roughly half of the 120,000 wafer per month manufacturing capacity at a significantly smaller price than they pay for fabrication now.
It is hoped that this maneuver will allow Micron to save significant money in the long term with a sizeable frontload of cash in the present.
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