Micron Technology Inc, the largest US memory chipmaker, agreed with Taiwan’s Nanya Technology Corp (南亞科技) to invest a combined US$1.1 billion into a venture to share production costs after a glut drove both companies to losses.
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The two companies will each contribute US$550 million in cash by the end of next year to form MeiYa Technology Corp which will develop and manufacture computer memory chips, the companies said in a statement today via Business Wire.
The agreement allows both chipmakers to reduce the burden of investing in multibillion-dollar factories after chip prices tumbled to record lows.
Micron, based in Boise, Idaho, has posted five consecutives quarters of losses, while Nanya has reported three straight periods of deficits.
The venture, based in Taiwan, will upgrade a Nanya production line to one that makes chips out of wafers measuring 12 inches in diameter, from 8 inches now, the statement said.
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Nanya, who are based in Taoyuan, also have a chip-making venture with Qimonda AG, called Inotera Memories Inc (華亞科技).
Nanya and Micron said last month that they had reached a preliminary agreement to form a venture.
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