Intel and STMicroelectronics: Production Chips European Approval

On Monday, the European Commission approved the request of Intel and Swiss STMicroelectronics to "co-produce flash memory chips", which means that the two companies have eliminated a major obstacle on the road to form a joint production of mobile flash memory chips.

Intel, STMicroelectronics and Francisco have reached an agreement to create a new independent semiconductor company. The core strategy of the new company is to provide a variety of flash memory chips, mainly for mobile phones, MP3 players, digital cameras, computers and Other devices provide storage support. It is reported that the main equipment and technology of the new company will mainly come from Intel and STMicroelectronics.

As a NOR flash division to the joint venture, Intel will receive $432 million in cash, and STMicroelectronics will receive $468 million in cash as compensation for its entire flash memory division. ST's flash memory chip division includes the NOR flash memory chip division and a NAND flash memory chip division with Hyundai Semiconductor.

The EU believes that the joint company will not form a monopoly on the storage market, because in the buyer's market or the seller's market, there is sufficient space in the current flash memory chip market for both parties to choose.

According to market research firm iSuppli, although the market revenue of global NOR flash chips last year was $8.3 billion, the entire field still failed to achieve profitability. Last year, NOR flash chips sold by Intel and STMicroelectronics generated $3.6 billion.

As far as Intel is concerned, Intel has maintained its operations so far despite the fact that the NOR business has not achieved profitability. Before Intel and Micron Technology jointly produced NAND flash chips in 2005, Intel’s annual loss in the NOR business was as high as $150 million.


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weight
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