Micron has announced its intent to acquire the remainder of shares in the IM Flash Technologies joint venture. The IM Flash joint venture started in 2006 and is a cooperation between Intel and Micron in which both companies develop and produce NAND flash and 3D Xpoint memory. Micron expects to pay approximately $1.5 billion in cash.
In a press release announcing Micron’s intention, the company states it hopes to start the acquisition process on the 1st of January next year, after which the deal should be completed after about six to twelve months. Once the acquisition completes, Micron will have full control over all IM Flash facilities, including a Lehi, Utah facility where 3D Xpoint is produced.
Part of the deal is that Micron will continue to supply 3D Xpoint wafers to Intel at current prices for at least a year after the acquisition completes. In case Intel decides to continue to market 3D Xpoint based products, the company will have to renegotiate a deal with Micron.
Earlier this year, Micron and Intel announced they would end their IM Flash joint venture for unknown reasons. Nevertheless, both companies also stated they would continue their activities till the second half of 2019, to at least complete development of the second generation of 3D Xpoint memory that powers Intel Optane and Micron QuantX products.