Micron Buying TI's Memory Business
Staff -- Semiconductor International, 8/1/1998
Micron Technology (Boise, Idaho) and Texas Instruments (TI, Dallas, Texas) made
an agreement for Micron to purchase the assets of TI's semiconductor memory
business in a deal valued at approximately $800 million. The transaction includes
the purchase of substantially all of TI's memory assets, as well as TI's shares
in its two DRAM manufacturing joint ventures. The transaction was viewed by
both companies as beneficial, with Micron expanding its memory market presence
and TI solidifying its focus on digital signal processing and analog products.
The deal is expected to be finalized in the second half of 1998.
In addition to TI's memory assets, Micron will receive $750 million in financing from TI to facilitate the deployment of Micron's technology throughout the business. Micron and TI have also agreed on a 10-year, royalty-free semiconductor patent cross-license agreement, to begin Jan. 1, 1999. TI will retain ownership of its related patents. Micron expects to offer positions to most TI memory employees.
Three wholly-owned TI manufacturing facilities are included in the transaction: wafer fabs in Avezzano, Italy and Richardson, Texas (formerly known as TwinStar) and an assembly/test facility in Singapore. Also included in the transaction is TI's interest in two joint ventures, TECH Semiconductor (Singapore) and KTI Semiconductor (Nishiwaki, Japan). TI currently owns an approximate 25% interest in each joint venture and has rights to 100% of the production of each. TI will close its Richardson, Texas, memory operation, with Micron retaining the facility for future capacity, pending a market upturn.
