Nanya Technology has announced the completion of its investment in Micron through private placement, and expects Micron's takeover of Inotera Memories to materialize on December 6.

Nanya has acquired 57,780,138 Micron shares for a total of NT$31.46 billion (US$981.16 million), which gives the Taiwan-based firm a 5.26% stake in the US company. Nanya has also obtained its option rights to use Micron's 1x and 1y DRAM technologies.

Nanya indicated it will also transfer all of its holdings in Inotera to Micron's Taiwan unit - Micron Semiconductor Taiwan (MST) - for NT$30 per share, or a total of NT$47.62 billion. An estimated NT$18.64 billion in after-tax profits will be recognized in Nanya's financial statement for the fourth quarter of 2016, the Taiwan-based DRAM maker said.

Nanya's participation in Micron's private placement and sale of its Inotera shares are the conditions enabling Micron's buyout of Inotera to materialize. Nanya said it believes Inotera's share-swap transaction with MST to complete on December 6, 2016.

In addition, Nanya noted its existing joint-venture contract with Micron will be terminated when Inotera becomes a unit of Micron. Nevertheless, Nanya and Micron will share the expenses arising from Inotera's specific items related to environmental safety and facilities during the contract period. Nanya will be responsible for 50% of the expenses estimated at a total of NT$1.7 billion, the company said.

Nanya added it will also be responsible for 50% of the costs arising from Inotera's violations related to environmental safety and facilities on or before the completion of Inotera's share-swap deal with Micron in the next 2-5 years.

In other news, Nanya president Pei-Ing Lee disclosed the company will start making 20nm DRAM chips in small volume in the second quarter of 2017, and production will expand in the following quarter. Nanya is looking to covert half of its total wafer starts to 20nm process technology in the third quarter of 2017, according to Lee.

Nanya is capable of producing 60,000 12-inch wafers using 30nm process technology per month.

By: DocMemory
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