U.S. chipmaker Micron Technology Inc. (MU) recently closed a deal with Taiwan’s Inotera Memories Inc. in a share-swap agreement in which the global leader of advanced semiconductor systems will increase its stake in Inotera from 33% to 100%.
On Monday, leaders from both companies along with Taiwanese President Tsai lng-wen, attending a closing ceremony at Inotera’s headquarters in Taoyuan with the theme “Together, Great Things Happen.” The event highlighted the positive prospects of the merger and celebrated the strengthening of the firms’ eight-year partnership. (See also: Micron Completes $4B Inotera Acquisition.)
U.S. Chipmaker Commits to Partnership
"All good things are worth waiting for, and the completion of this transaction is no exception," said Micron Chief Executive Mark Durcan. "Micron is pleased to welcome Inotera talent to its global team, and we are committed to providing high quality jobs and rich international collaboration opportunities to our Taiwan team members."
With Micron’s integration of Inotera to its operations, the U.S. firm will become the largest foreign employer and investor in Taiwan. Micron says its goal in Taiwan is to grow its presence form its current wafer manufacturing function to a broader center of expertise in the global memory industry.
To champion this initiative, Micron announced its membership in the System-On-Chip (SoC) center at the National Taiwan University. The SoC Center’s mission is to consolidate industrial momentum in Taiwan and address market needs through the support of the local semiconductor industry. The Boise, Idaho-based chip maker also announced the inclusion of the city of Taoyuan in its philanthropic organization called the Micron Foundation, which provides donations to schools, universities and community organizations.
The Micron-Inotera deal was finalized on Dec. 6 and is valued at approximately $4 billion, net of cash and debt, or $0.94 per share. Micron assures investors that the deal will work to strengthen Micron’s position in the “leading-edge DRAM” market for the long-term while providing a “strong path forward for Inotera and its employees.” (See also: Analysts Up Micron PT on Higher Q1 Guidance.)