Micron Technology on July 31 announced the closing of its acquisition of Elpida Memory, and also its takeover of a 24% share of Rexchip Electronics from Powerchip Technology.

The acquisition gives Micron 100% ownership in Elpida, including a 300mm DRAM fab in Hiroshima, Japan, and approximately 65% ownership interest in Rexchip, whose assets include a 300mm DRAM fabrication facility located in Taiwan.

Through the deal, Micron is also allowed to own a 100% ownership interest in Akita Elpida Memory, whose assets include an assembly and test facility located in Akita, Japan.

Together with the Rexchip shares acquired from Powerchip, Micron will control approximately 89% of Rexchip's outstanding shares and 100% of Rexchip product supply, according to Micron. The manufacturing assets of Elpida and Rexchip together can produce more than 185,000 300mm wafers per month, which represents an approximate 45% increase in Micron's current manufacturing capacity.

"We are pleased to bring together Elpida with Micron to form the industry's leading pure-play memory company," Micron CEO Mark Durcan said in a statement. "This combination will result in enhanced R&D and manufacturing scale, significant cost and production synergies and a stronger memory product portfolio to provide solutions to our customers."

Meanwhile, effective with the closing, Yukio Sakamoto has resigned as CEO, president and co-trustee of Elpida. Micron also announced the appointment of Yoshitaka Kinoshita as the president, representative director and business trustee of Elpida, and the president of Micron Japan.

By: DocMemory
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