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Intel & ST NOR flash merger a done deal |
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May 08, 2007 at 02:34 PM |
Our own research into the potential spin-off of Intel's and ST Microelectronics' NOR flash businesses into a combined new entity suggests that it is a done deal on many fronts and includes another partner!
The new spin-off will move quickly to migrate NOR flash production to 300mm wafers in an effort to remain competitive with Spansion and its newest threat, Samsung.
That means M6, ST's shuttered 300mm fab in Catania, will be used in the deal, also helping ST shift to a more fab-lite model in the coming years. We believe M6 is being readied now!
The other partner in the NOR flash business is Hynix, the announcement of which is expected soon. The Korean memory manufacturer may combine its NOR manufacturing to the partnership and give the use of its 300mm JV operations in Wuxi, China for a portion of its capacity under a foundry arrangement.
In ST's most recent conference call with financial analysts, executives of the company had to repeatedly fend off multiple questions concerning the rumours of an Intel partnership in NOR.
Though defending its commitment to turn the NOR flash business around, executives did not directly confirm or deny a partnership and hinted that 300mm production for NOR was required for the future success of that business.
It is not clear as yet why an announcement has yet to be made as we believe it has been a done deal for some time and 300mm production preparations are already underway.
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