[Am-info] Toshiba Dumps Infineon, Sells Chipmaking Plant To Micron

[Fred A. Miller]

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Toshiba Dumps Infineon, Sells Chipmaking Plant To Micron

Japanese electronics company Toshiba Corp. has ended talks 
about a chipmaking partnership with German semiconductor 
company Infineon Technologies AG and will instead sell its U.S. 
DRAM plant to Micron Technology Inc. 

Toshiba and Infineon had been in talks for several months to 
partner their chip businesses, hoping to cut costs in a 
depressed market. Just last week, Infineon CEO Ulrich Shumacher 
said the two companies had agreed on the framework of a deal. 
But Toshiba has decided to get out of the commodity DRAM market 
entirely, selling the Manassas, Va., Dominion Semiconductor 
plant to Micron by the end of January. Financial details of the 
transaction have not been disclosed.

VLSI Research analyst Risto Puhakka says the deal is good news 
for the semiconductor industry, and particularly for DRAM 
makers. "It gets one supplier out of the picture," he says. 
"It's been so bad for DRAM makers that there really needs to be 
a serious consolidation." Puhakka says that DRAM makers sell 
the chips at a loss because supply outweighs demand, but 
consolidation will give them some leverage.

Good news for chipmakers could be bad news for customers who 
are used to bargain-basement prices. "The issue here is that if 
the industry consolidates further, the suppliers will get some 
pricing power," Puhakka says. "Eventually, the systems makers 
will have to pay more and charge their customers more." - David 
M. Ewalt

For related coverage, see
Micron, Hynix Plan Alliance Talks, May Merge
http://update.informationweek.com/cgi-bin4/flo?y=eFRX0Bce7K0V20bgv0Ac

Micron Posts Loss, Exits Internet-Access Business 
http://update.informationweek.com/cgi-bin4/flo?y=eFRX0Bce7K0V20BEkB0AR

- -- 
Fred A. Miller
Systems Administrator
Cornell Univ. Press Services
fm@cupserv.org

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