|
May 22, 2007 at 04:13 PM |
The Intel and STMicroelectronics flash spin-off may be ‘official' news now but it was interesting to note how much has been left out of the initial press announcement!
This means that we should expect a series of new press releases very soon that will include the new name of the company, its move to use 300mm wafers and later (around a year from now) that various 200mm fabs currently in use will be sold or shuttered. Unfortunately, the Intel flash fab in Israel is, in my view, probably the first to go.
It is also highly unlikely that the headcount currently put at 8,000 will remain intact. Both R&D as well as manufacturing jobs will go in due course as the new company struggles to halt losses and move back into profitability.
The inclusion of phase change memory IP is a good move as this will ultimately prove to be the core technology for the future well-being of the business and should open up new markets to pursue as NOR growth is barely at 1 percent and is coming under serious threat from NAND in mobile phones.
It would also seem that STM has been keener to commit to the deal than has Intel and the fact that the new company will be based in Switzerland (home of STM) shouldn't go unnoticed!
The cash injection of $1.5 billion isn't enough to aggressively move to 300mm manufacturing so expect more money raising activities to follow, which would need to be done soon if the JV wants to keep pace with Spansion.
|
Blogs 
