Micron to buy out Intel’s share in flash memory joint venture for $1.5 billion

Micron Technology Inc. MU, -2.48% said late Thursday it plans to buy out Intel Corp.’s INTC, -2.00% share of a flash memory joint venture between the two chip makers. Micron expects to pay Intel $1.5 billion for its stake of the IM Flash joint venture. Micron expects to close the deal in six to 12 months after it is able to exercise call options on Jan. 1. As recently as July, Micron and Intel announced they’d complete work by the first half of 2019 on developing the second generation of 3D XPoint technology, which is meant to improve storage performance and reduce server memory costs. "Micron’s acquisition of IM Flash demonstrates our strong belief that 3D XPoint technology and other emerging memories will provide a unique differentiator for the company and be an essential solution for new data-hungry applications," said Sanjay Mehrotra, Micron president and chief executive, in a statement. The companies will continue to jointly manufacture 3D XPoint memory products at a Lehi, Utah-based facility until the deal closes. Back in 2012, Micron and Intel had expanded the flash memory joint venture.

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