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Micron Technology Inc. (MU)

  • Oct. 1, 2013, 11:34 AM
    • Intel (INTC +0.3%) is taking full control of an Israeli plant it has leased to Micron (MU +1.3%), and which is currently used to make NOR flash memory. Intel will hire 800 full-time employees and 200 contract workers currently on Micron's payroll.
    • The chip giant had already expressed interest in taking over the plant, which was set to be shuttered in 2015, as well as in investing $10B to build a new Israeli fab and upgrade an existing facility.
    • Though the Micron fab will continue making NOR flash for now (NOR demand has been declining), Intel wants to eventually use it to make 10nm CPUs. Intel is looking to begin shipping 10nm CPUs in 2015, though mass-production might not happen until 2016.
    • Intel is reportedly looking for a $300M-$400M government grant to help pay for its investment. The company directly employs nearly 8K Israeli workers, and is indirectly responsible for many more.
    • NOR flash vendor Spansion (CODE +4.4%) is rallying.
  • Aug. 15, 2013, 11:34 AM
    • Intel (INTC -1.8%) has quietly acquired a U.S.-based Fujitsu unit that has developed a multimode 4G RF transceiver chip. Terms are undisclosed.
    • The chip giant calls Fujitsu's transceiver "probably the most advanced multimode LTE RF transceiver available in the open market." It should complement Intel's 4G baseband chips, and compete with transceivers from Qualcomm (QCOM), Analog Devices (ADI), and others.
    • Intel's Infineon mobile chip unit has been slow to roll out a multimode 4G baseband; Intel has promised phones featuring one will arrive early next year. In the meantime, Qualcomm controls a 90%+ share of the burgeoning 4G baseband market.
    • Meanwhile, Baird's Tristan Gerra justifies his downgrades of Intel and Micron (MU -4.6%) by citing a litany of concerns stemming from an Asian trip. Gerra's findings point to "a below-seasonal outlook for the second-half, with recent reductions in PC order rates, continued weakness in smartphones, rising analog IC inventories at distributors," and the potential for DRAM supply to exceed demand.
    • Micron recently forecast DRAM bit growth will remain muted in 2H and 2014, leading to a favorable supply/demand balance.
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  • Jul. 29, 2013, 10:56 AM
    • The closing follows U.S. and Japanese court approvals of the deal, and the rejecting of objections raised by Elpida creditors.
    • The deal will greatly increase Micron's (MU +0.4%) exposure to the fast-growing and higher-margin mobile DRAM market at a time when PC DRAM volumes continue to slump, and cement the DRAM industry's consolidation around Micron, Samsung, and SK Hynix.
    • PR
  • Jun. 7, 2013, 7:14 PM
    The Micron/Elpida deal has taken another step towards completion, as a 4PM ET deadline for U.S. Elpida credtors to object to an Elpida request to have a U.S. bankruptcy court sign off on its restructuring passes without a challenge being made. Last month, a Tokyo bankruptcy court rejected appeals from objecting Elpida creditors, leaving the U.S. court's approval the deal's only major remaining obstacle. Micron (MU) +0.9% AH to a new 52-week high of $12.76.
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  • Feb. 28, 2013, 1:04 PM
    A Tokyo District Court approves Micron's (MU +1.1%) purchase of Elpida after creditors vote to approve the deal. Save for the finalization of the court's approval order, all that's left is for a Delaware bankruptcy court to sign off on the deal, which Micron and Elpida still hope will close in 1H. The news comes shortly after Micron reached a deal to sell an Avezzano, Italy plant to private LFoundry, and to simultaneously contract LFoundry to manufacture image sensors for Micron. (Chinese approval)
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  • Feb. 19, 2013, 6:23 PM
    Micron (MU) +0.9% AH after announcing China's Ministry of Commerce has signed off on the Elpida purchase - Micron claims this was "the last remaining antitrust pre-merger clearance" needed. Elpida's creditors still need to vote on the deal; Micron continues to target a 1H close. (PR) (previous)
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  • Jan. 17, 2013, 10:19 AM
    Micron (MU +2.5%) moves a step closer to owning Elpida after a U.S. bankruptcy court signs off on Elpida's IP licensing deal with Micron and $15M patent sale to Rambus (RMBS +1.2%) over the objections of U.S. bondholders. The decision comes less than 3 months after a Tokyo court approved the Micron-Elpida deal and dismissed an alternate proposal from bondholders. Elpida creditors have until the end of February to vote on the Micron deal. (previous)
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  • Dec. 21, 2012, 12:50 PM
    Micron (MU -7.4%) is off sharply in response to its FQ3 miss, which had much to do with an 11% drop in DRAM ASPs. CLSA has "downgraded" shares to Outperform from Buy, but Wedbush and Jefferies argue a rebound is due: the latter sees gross margin rising 1500 bps over the next 12 months. SanDisk (SNDK -0.8%) is off just modestly (previous) - Micron noted on its call NAND flash pricing is stable. But DRAM/NAND giant Samsung (SSNLF.PK) fell 4.1% in Seoul. This morning, Micron announced Japanese regulators had signed off on the Elpida deal, as expected.
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  • Nov. 1, 2012, 5:40 AM
    A Tokyo court has approved Micron's (MU) plan to acquire Elpida in a $2.5B deal and dismissed a rival scheme from the bankrupt Japanese chipmaker's bondholders. Those holders now intend to vote against the plan when it goes to a vote of creditors, which needs to take place by Feb. 26, saying it delivers "Elpida to Micron at a grossly inadequate price."
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  • Oct. 3, 2012, 11:44 AM
    A Japanese court has again delayed a ruling on competing plans to restructure bankrupt Elpida - a recommendation is now expected by Oct. 29. Elpida has backed a deal in which Micron (MU -0.3%) would acquire the memory maker for ~$2.5B in equity and debt considerations, but some Elpida bondholders aren't happy with the deal's terms, and have submitted an alternate proposal.
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  • Aug. 21, 2012, 3:27 AM
    Micron (MU) reportedly intends to provide Elpida with ¥80B ($1B) in loans and debt guarantees if the U.S. company succeeds in acquiring the bankrupt Japanese chipmaker. The money would come on top of the ¥200B that Micron intends to spend on acquiring Elpida.
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  • Jul. 10, 2012, 2:18 AM
    A group of Elpida bondholders plan to vote against Micron's (MU) ~$750M takeover of the bankrupt Japanese chipmaker, and told a Tokyo district court they'll put forward an alternative proposal to Micron's offer. It's unclear if the unnamed bondholders have enough votes to hold up the deal.
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  • Jul. 2, 2012, 7:42 AM
    Micron Technology (MU) has agreed to acquire Elpida Memory for about $750M. Under the deal, Micron will pay the creditors of the bankrupt Japanese chipmaker $1.75B in annual installments until 2019. Micron +1.6% premarket. (previous)
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  • Jun. 28, 2012, 5:23 PM
    If today's report that Micron (MU +4.4%) will buy Elpida for ~$2.5B (plus ~$1.25B in promised plant investments) is true, it's a good deal for the company, thinks Nomura's Sidney Ho. Ho points out Micron will be paying Elpida creditors about 30 cents on the dollar for their $5.3B in debt, and that this implies an asset purchase price of just ~$750M, better than many expected. However, he rates Micron a Neutral on worries about end-user demand and NAND flash pricing.
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  • Jun. 28, 2012, 2:07 PM
    Micron (MU +3.3%) jumps in afternoon trading on a report from The Nikkei it will buy bankrupt Elpida (ELPDF.PK) for ¥200B ($2.51B). The companies have been talking for months about a deal, which stands to improve industry-wide DRAM pricing by limiting capacity, while increasing Micron's economies of scale and strengthening its relatively weak position in the fast-growing mobile DRAM market. There are concerns, however, about the impact on Micron's balance sheet.
  • May 21, 2012, 8:13 AM
    A group of Elpida Memory's bondholders oppose Micron's (MU +2%) bid to buy the bankrupt Japanese firm as too low, Reuters reports. The creditors have therefore contacted South Korea's Hynix (HXSCF.PK) - which dropped out of the auction - and U.S.-based GlobalFoundries about selling the company to them.
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Company Description
Micron Technology Inc is a manufacturer and marketer of DRAM, NAND Flash memory, CMOS image sensors and other semiconductor components. It has two segments, Memory and Imaging.