The Elpida buy of Micron is a bold project with risks, says HIS

Published:2012/7/25 2:49:00 Author:Ecco From:SeekIC

According to the report made by market research firm IHS iSuppli, it is a bold project with risk that Micron Technology Inc.’s move to acquire bankrupt Japanese DRAM vendor Elpida Memory Inc. Particularly, the integration and technology transfer are not easy to carry.

Mike Howard, senior principal analyst for DRAM and memory at IHS, makes a statement which indicates that Several key components make the Micron-Elpida deal appear to be a smart move, but integration could prove challenging or even messy if details are not worked out carefully enough.

IHS said the acquisition is expected to boost Micron’s DRAM production to 370,000 wafer starts per month over the long term, up 131 percent from 160,000 wafer starts prior to the purchase. In addition, the acquisition will make Micron be the No. 2 player in DRAM, leapfrogging SK Hynix Inc. and continuing to trail Samsung Electronics Co. Ltd. According to HIS, Samsung has about 400,000 DRAM wafer starts per month, while Hynix has about 300,000.

HIS suggested that the technology transfer entailed would lead Elpida—a competitor on roughly the same scale as Micron—great money and time consuming.

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