Inotera Memories Inc’s (華亞科技) fast migration to advanced 20-nanometer (nm) DRAM technology is the driving force behind Micron Technology Inc’s plan to continue its buyout of the memorychip maker, TrendForce Corp (集邦科技) said.
The Taipei-based researcher said the NT$130 billion (US$4.01 billion) acquisition would create a win-win situation for Micron and Nanya Technology Corp (南亞科技), which agreed to sell a 24 percent stake in Inotera to the US memorychip maker.
The deal is crucial for Nanya, as the share sale would give it access to next-generation technologies from Micron, extending their partnership on 20nm technology, TrendForce said in a report released on Monday after Inotera told a media briefing that Micron is to acquire the remaining 67 percent stake from Nanya and other members of Formosa Plastics Group (台塑集團).
Micron is the world’s second-largest DRAM supplier, with an 18.5 percent global market share by revenue last quarter, behind South Korea’s Samsung Electronics Co’s 46.4 percent and SK Hynix Inc’s 27.1 percent, according to TrendForce data.
For Micron, “Inotera has replaced Micron Memory Japan (MMJ) as the most important [20nm chip] manufacturing site for the company,” TrendForce said.
MMJ was previously named Elpida Memory Inc before being acquired by Micron in 2013.
“Inotera was the first company to start the migration to 20nm technology,” among members of the Micron camp, including MMJ, Micron Memory Taiwan, Inotera and Micron’s US plants, TrendForce said.
In September, Inotera is to start shipping 20nm chips to customers, the researcher said.
INOTERA ‘ON TRACK’
Taoyuan-based Inotera earlier this year said that it is on track to migrate all of its capacities to 20nm chips by the end of this quarter.
As Micron’s output growth next year is to come primarily from the migration to 20nm chips, “Inotera will play an irreplaceable role in the Micron camp,” TrendForce said.
Inotera contributes 100,000 12-inch wafers a month to Micron, making up about 30 percent of the US memorychip maker’s total monthly DRAM capacities of 315,000 12-inch wafers, the researcher said.
Micron’s decision on Wednesday last week to postpone the acquisition sent Inotera shares down 10 percent yesterday to end at NT$23.85 in Taipei trading, after plunging 9.86 percent on Monday, erasing more than NT$36.57 billion in market cap in just two days.
Inotera was yesterday fined NT$300,000 by Taiwan Stock Exchange Corp for the belated disclosure of Micron’s delayed closing of the acquisition deal.
“Inotera has violated rules of disclosing important corporate information,” the Taiwan Stock Exchange said in a statement.
“The violation has caused a significant impact on its stock price,” it added.
Inotera should have applied to suspend trading of its shares on Tuesday last week, one day before Micron made the announcement, as related rules stipulate, the statement said.
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