Micron Technology is set to complete its long-awaited merger with Elpida Memory in early August, according to industry observers.

Both companies' combined market share will be comparable to SK Hynix, which is currently the world's second-largest supplier of DRAM, trailing behind Samsung Electronics, the observers indicated.

The new Micron-Elpida entity will have three production units in Asia. Its Taiwan-based production subsidiaries - Inotera Memories and Rexchip Electronics with a combined monthly capacity of about 210,000 12-inch wafers - will produce PC DRAM as well as DRAM chips for servers and mobile devices, while Elpida's Hiroshima facility in Japan will be dedicated to making mobile DRAM products with monthly capacity of 100,000-120,000 12-inch wafers, the observers disclosed.

Meanwhile, all production capacity at Micron's Singapore fab will be allocated to manufacture NAND flash memory, the observers said.

Micron in July 2012 proposed a JPY200 billion deal to take over Elpida, which filed for bankruptcy in Japan in February of the same year. The offer at that time was equivalent to US$2.5 billion, but weakening yen in 2013 could help Micron reduce the purchase cost.

In addition, after completing its Elpida acquisition, Micron will be able to expand its presence in the mobile DRAM market and become competitive in the MCP (multi-chip package) field, which has been boosted by smartphone demand.

By: DocMemory
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