Micron exercises option to buy Intel’s stake in Lehi’s IM Flash

Micron Technology Inc. has announced that it intends to take full control of its IM Flash Technologies joint venture with Intel Corp., including the IM Flash facility that the two companies built in Lehi. The deal’s terms include payment of about $1.5 billion in cash, as well as Micron taking over Intel’s debt in the venture, which was about $1 billion as of Aug. 30, Micron said.

The company can exercise a call option starting Jan. 1 and the transaction is expected to close between six and 12 months after Micron exercises its option, at which time IM Flash will become a wholly owned subsidiary of Micron. 

Intel and Micron initially contributed about $1.2 billion each to set up IM Flash Technologies in 2006.

IM Flash makes 3D XPoint, a nonvolatile memory that was announced in July 2015 and has been sold under the brand names Optane and QuantX since 2017. It is used in data centers and high-end computers. In July, the two chipmakers announced they had decided to conclude their joint development of 3D XPoint technology after the completion of the second-generation node, which is expected to occur in the second half of fiscal 2019. Based on prior agreements, Micron will sell 3D XPoint memory wafers to Intel for up to a year after the deal closes.

“Micron’s acquisition of IM Flash demonstrates our strong belief that 3D XPoint technology and other emerging memories will provide a unique differentiator for the company and be an essential solution for new data-hungry applications,” said Micron president and CEO Sanjay Mehrotra. “This investment provides Micron with an established development and manufacturing facility and a highly skilled workforce with a strong track record of innovation and execution.”

The two companies will now independently drive their own future technology roadmaps, Micron said in a release. Micron is currently collaborating with ecosystem partners to introduce 3D XPoint products in late calendar 2019, with a revenue stream from the product starting in calendar 2020.