The future has been very dark for memory maker Elpida, everything from mergers with other companies to being chopped and sold in parts have been in the news as of late. It is now official that American company Micron will acquire the company with big plans for expanding.
Back in May Micron got an exclusive right to bid on Elpida, after promises that it would not axe the Japanese the work force. It is now said the deal is done and that Micron pays 200 billion Yen – around 2.5 billion Dollar. Out of this nearly 140 billion Yen will go directly Elpida’s creditors, which means that around 67 percent of the debt of 420 billion will not be repayed. The remainder of the case will go to paying of debt to Elpida’s contractors and business partners.
Elpida’s plant in Hiroshima lured Micron to put a bid in
Micron will take over Elpida’s operation and thus become the world’s second largest manufacturer of DRAM when the deal closes. Micron is said to have plans to expand for 100 billion Yen, which will be invested in Elpida’s old plants. This will increase production of mobile memory circuits like LPDDR, LPDDR2 and the recently announced LPDDR3, to mention a few.
There is no press release yet, since the deal is not yet official.
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