Intel and Micron form Flash firm

Chip JV to punch out product for Apple


Intel and Micron are to form a third company to make NAND Flash memory chips, the two companies announced today, almost as soon as Apple said it was paying $1.25bn to secure Flash supplies through 2010.

Apple's largesse will be spread among five chip makers - Intel, Micron, Samsung, Toshiba and Hynix. Apple didn't say how the money would be shared out, but Intel and Micron have since said they're getting $250m each.

The $500m will, in part, go into the formation of their joint venture, IM Flash Technologies, which will "exclusively manufacture product for Micron and Intel". The partners said a "significant portion" of each of their shares of IM's output will be delivered to Apple.

Shareholders and regulators have to approve the deal, of course, but if they do it will become a legal entity by the end of the year. Intel and Micro will both put up $1.2bn in "cash, notes and assets" for IM, and then both contribute a further $1.4bn over the next three years and "make additional investments as appropriate to support the growth of the operation".

IM will be 51 per cent owned by Micron and 49 per cent owned by Intel. It will begin production in Boise, Idaho, Micron's home town, though plants in Manassa, Virginia and Lehi, Utah will also be among IM's first fabs.

Micron and Intel said IM will "aggressively" convert to its parents' 72nm and 50nm fabrication technology. ®


Other stories you might like

  • Cheers ransomware hits VMware ESXi systems
    Now we can say extortionware has jumped the shark

    Another ransomware strain is targeting VMware ESXi servers, which have been the focus of extortionists and other miscreants in recent months.

    ESXi, a bare-metal hypervisor used by a broad range of organizations throughout the world, has become the target of such ransomware families as LockBit, Hive, and RansomEXX. The ubiquitous use of the technology, and the size of some companies that use it has made it an efficient way for crooks to infect large numbers of virtualized systems and connected devices and equipment, according to researchers with Trend Micro.

    "ESXi is widely used in enterprise settings for server virtualization," Trend Micro noted in a write-up this week. "It is therefore a popular target for ransomware attacks … Compromising ESXi servers has been a scheme used by some notorious cybercriminal groups because it is a means to swiftly spread the ransomware to many devices."

    Continue reading
  • Twitter founder Dorsey beats hasty retweet from the board
    As shareholders sue the social network amid Elon Musk's takeover scramble

    Twitter has officially entered the post-Dorsey age: its founder and two-time CEO's board term expired Wednesday, marking the first time the social media company hasn't had him around in some capacity.

    Jack Dorsey announced his resignation as Twitter chief exec in November 2021, and passed the baton to Parag Agrawal while remaining on the board. Now that board term has ended, and Dorsey has stepped down as expected. Agrawal has taken Dorsey's board seat; Salesforce co-CEO Bret Taylor has assumed the role of Twitter's board chair. 

    In his resignation announcement, Dorsey – who co-founded and is CEO of Block (formerly Square) – said having founders leading the companies they created can be severely limiting for an organization and can serve as a single point of failure. "I believe it's critical a company can stand on its own, free of its founder's influence or direction," Dorsey said. He didn't respond to a request for further comment today. 

    Continue reading
  • Snowflake stock drops as some top customers cut usage
    You might say its valuation is melting away

    IPO darling Snowflake's share price took a beating in an already bearish market for tech stocks after filing weaker than expected financial guidance amid a slowdown in orders from some of its largest customers.

    For its first quarter of fiscal 2023, ended April 30, Snowflake's revenue grew 85 percent year-on-year to $422.4 million. The company made an operating loss of $188.8 million, albeit down from $205.6 million a year ago.

    Although surpassing revenue expectations, the cloud-based data warehousing business saw its valuation tumble 16 percent in extended trading on Wednesday. Its stock price dived from $133 apiece to $117 in after-hours trading, and today is cruising back at $127. That stumble arrived amid a general tech stock sell-off some observers said was overdue.

    Continue reading

Biting the hand that feeds IT © 1998–2022