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Tsinghua hires chairman of Micron JV; Barron's makes bull case

Oct. 12, 2015 5:16 PM ETMicron Technology, Inc. (MU) StockMUBy: Eric Jhonsa, SA News Editor18 Comments
  • Charles Kau, chairman of Micron (NASDAQ:MU) and Nanya's Inotera DRAM JV, has been hired by China's state-controlled Tsinghua Unigroup, which was previously reported to have bid for Micron. Kau will act as one of Tsinghua's three global EVPs and be responsible for its memory business, while remaining Inotera's chairman.
  • "We have cooperation with Micron on the business level," says Tsinghua chairman Zhao Weiguo. "We’d like to conduct business by cooperating with current memory giants, by setting up JV plants in China." The remarks come shortly after a Tsinghua subsidiary took a 15% stake in hard drive giant Western Digital, and a few months after rumors of a full-blown Micron bid drew hostile responses from politicians.
  • Zhao suggests Tsinghua is more interested in manufacturing NAND flash (at least directly) than DRAM. However, he adds the company has no interest in buying NAND vendors SanDisk, Toshiba, or SK Hynix (assuming regulators would approve).
  • Meanwhile, Barron's provided a bullish write-up for Micron over the weekend. The paper cited the potential of Micron/Intel's 3D XPoint memory tech - commercial shipments start next year, with "meaningful" revenue contribution by 2018 - and a belief DRAM demand is bottoming. It also sees Micron benefiting from chip industry consolidation, either as a seller or a buyer.
  • In spite of the Barron's piece, Micron fell 0.7% today. The Nasdaq was up fractionally.

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