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Intel will sell its stake in two NAND flash memory wafer fabs to Micron for $600 million, the two companies announced.
Under the agreement, Micron will purchase Intel’s share of IM Flash Singapore (IMFS) and IM Flash Technologies (IMFT) in Manassas, Va.
Intel will receive about half of price in cash and the remaining amount will be deposited with Micron. The revenue may be applied to Intel's future purchases or refunded. The agreement also extends the companies’ NAND flash joint development program and expands it to include emerging memory technologies.
Intel and Micron entered into a joint agreement to develop and produce NAND flash memory chips in 2006 and formed IM Flash. Each company invested $1.2 billion.
“With IM Flash and its associated programs, our companies have become leaders in the NAND flash arena. These new agreements build on that success," said Micron Chief Executive Officer Mark Durcan.
The Intel-Micron partnership created an industry-leading global manufacturing network, according to Robert Crooke, corporate vice president and general manager of the non-volatile memory solutions group for Intel. The new NAND Flash supply agreement with Micron gives Intel “better flexibility to meet growing demand for SSDs and other products," he said.
The deal is expected to be completed in the first half of this year.