Intel, Micron update flash memory relationship

Intel Corp. and Micron Technology Inc. on Tuesday announced that they have agreed to expand their joint venture relationship in flash memory chips. The agreements will extend their successful joint development program on NAND flash memory and expand it to include emerging memory technologies, the two chipmakers said in a joint statement. Intel and Micron formed several joint ventures in 2006 and 2007 to primarily manufacture NAND flash memory, a fast-growing memory technology used in removable storage devices, smartphones and tablet computers. Under the new agreements, Intel will sell its stake in two wafer factories to Micron for about 600 million U.S. dollars, receiving half in cash while the rest will be deposited with Micron to be refunded or applied to Intel's future purchases of NAND flash supply. Micron, the largest U.S. maker of computer memory chips, noted that buying Intel's stake in their joint venture will increase its share of the overall NAND flash output and optimize its global manufacturing network. As part of the agreements, Micron will continue to supply Intel, the world's largest computer chipmaker, with NAND flash memory from its facilities. The two companies said their transaction is expected to close during the first half of this year, subject to certain conditions.