Intel puts $450m into Micron
Published: 25 Sep 2003 11:35 BST
Memory-chip maker Micron Technology has received a $450m (£272m) investment from chip giant Intel, Micron said on Wednesday.
The deal is designed to bring Micron's development plans into closer alignment with Intel technology, said Chuck Mulloy, an Intel spokesman. At the same time, Mulloy said, the agreement sets the stage for Intel to make future purchases of Micron's MDDR2 memory chips and it supports Micron's development of 300mm wafer processing.
Under the deal, Intel paid $450m in cash for roughly 34 million shares of Micron, a 5.3 percent stake.
The investment is the second Intel has made in Micron. In 1998, Intel invested $500m, but it has sold that equity stake over time, Mulloy said. He noted that Intel will sell its investment stakes for a variety of reasons, ranging from strategic issues to financial concerns.
The Micron investment is Intel's latest in a memory-chip maker. Earlier this year, Intel invested $123m in Elpida Memory over two funding rounds, Mulloy said.
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