Taiwan-based DRAM makers Nanya Technology and Inotera Memories have both reached deals with Micron Technology of the US, which will have Inotera become a wholly-owned subsidiary of Micron, and have Nanya subscribe to up to NT$31.5 billion (US$958 million) worth of new Micron shares. The deals continue to proceed despite a delay in closing the transactions, according to Pei-Ing Lee, president of Nanya and chairman of Inotera.

An update will be provided later in the second half of 2016, said Lee, adding that Nanya will fully cooperate with Micron to go through relevant procedures as required and complete the deals.

Micron disclosed in June that its acquisition of Inotera originally scheduled to complete in mid-July would be delayed. The announcement has raised concerns about uncertainty over the acquisition deal.

Speculation has also circulated recently that Micron could be a target for acquisition. Micron recently filed a document to the Securities and Exchange Commission disclosing the company has adopted a rights agreement that "is intended to avoid an 'ownership change' within the meaning of Section 382 of the Internal Revenue Code of 1986, as amended, and thereby preserve the current ability of the company to utilize certain net operating loss carryforwards and other tax benefits of the company and its subsidiaries."

According to a report by Taiwan's TechNews, Micron's adoption of a so-called "poison pill" is just to avoid the impact on its management after having Nanya become its largest shareholder. Nanya following its participation in Micron's upcoming private placement will allow the Taiwan-based firm, whose parent company is Formosa Plastics Group, to obtain a 6.2% stake in the US vendor.

By: DocMemory
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