IM Flash Technologies

IM Flash Technologies is a semiconductor manufacturer founded in January 2006 by Intel and Micron Technology. This joint venture, in which, after creation, partners invested $1.2 billion, produces advanced non-volatile 3D SOUNDoint memory, which is used in data centers and high-performance computers. The company has a 300 mm silicon wafer processing facility in Lehi, Utah, USA.

History

2018: Micron buys back Intel's stake in IM Flash Technologies for $1.5 billion

On October 18, 2018, Micron Technology  announced the buyback of Intel's stake in IM Flash Technologies for $1.5 billion. This transaction indicates Intel's desire to opt out of the production of 3D SOUNDoint memory.

Under the terms of the agreement, Micron will not only pay $1.5 billion from its own funds, but will also incur $1 billion in Intel debts to IM Flash Technologies. It is planned to close the deal within the period of 6-12 months, which will begin on January 1, 2019. Within a year of completing the deal, Micron will sell 3D SOUNDoint memory to Intel.

IM Flash Technologies Plant Building

Micron CFO Dave Zinsner told the conference that the company will pay for the acquisition from its free cash flow, and this deal will not affect the chipmaker's plans to repurchase shares.

The split in the relationship between Intel and Micron was indicated in early 2018, when the companies  announced  the intention of each of them to independently develop 3D NAND memory with more than 96 layers. In June, the companies announced the same in relation to the joint development of 3D SOUNDoint memory, which will end in early 2019. Thus, the existence of a joint business, which was the enterprise of IM Flash Technologies, was a matter of time.

Micron intends to introduce the first branded solid-state drives based on 3D SOUNDoint memory at the end of 2019, and it is going to begin serial deliveries of such products in 2020.^[1]

Notes